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To: Pelham
Higher rates don’t change the amount of Treasury debt.

It does make interest payments on newly issued bonds higher, whether those bonds finance an increase in the debt limit or are rolling over maturing bonds.

There's a problem with your logic in a cash flow dictated by entitlement spending.

72 posted on 05/04/2025 10:43:07 AM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: Carry_Okie

“There’s a problem with your logic in a cash flow dictated by entitlement spending.”

No, the problem is your lack of understanding of how government spending works.

All of it is funded either out of current tax receipts or from issuing additional Treasury debt.

Entitlement spending comes from those same two sources, just like every other dollar of federal spending. It’s not somehow special or different as you apparently believe.

Your previous idea that higher interest rates are inflationary when they actually do the opposite already was the tell that economics isn’t your strong point. Maybe study up more.


80 posted on 05/04/2025 10:41:19 PM PDT by Pelham (President Eisenhower. Operation Wetback 1953-54)
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