Posted on 06/16/2025 10:11:58 AM PDT by Racketeer
Let’s offer some facts.
(Musk has some minor errors above)
1.The debt is $37T. About $6T of that is on deposit at the Fed from the Fed’s QE of over 10 yrs. That $6T collects interest, but that interest is refunded to Treasury. So it’s interest free debt, sorta.
2. The interest rate on that debt is a composite of whatever the prevailing rates were of the various duration instruments when they were borrowed. So the debt has some 1 year duration, some 5 yr, some 10 yr, some 30 yr. Like so. It’s a composite of all of that since the various durations don’t all have the same interest rates. Overall number is 3.4% And Rising. 10 yr debt 10 yrs ago was much lower rate than now, ditto 30 etc. As those expire they are rolled over into current 10 and 30 year instruments At The Current Rate, which is higher than years ago . . . so . . . the composite rate is rising.
3) Call it $31T X 0.034 and you get interest of $1.054T. As we add debt, and the BBB DOES add debt, and rates continue flat or up, the $1.054T increases.
Even today, with looming de facto bankruptcy, congressmen put their reelection ahead of country.
Like the legacy media, we do not hate Congress enough.
“Like the legacy media, we do not hate Congress enough.”
Well it is deeper than that. Congress critters are put there by voters. All the Presidents share responsibility as well.
Congress buys votes with spending bills. Increasing taxes is not popular. If one’s chief goal is to win another election to keep a very cushy job with great benefits, then one is tempted to spend without raising taxes. Citizens keep voting for these bums. Relatively few voters are interested in a politician who wants to balance the budget and pay down debt. We need a federal balanced budget amendment.
I have that book. It’s pretty good.
L
(To you, Racketeer, this is a rhetorical question; but to the general FR readership, this is particular. Who is it that profits from lending money to the U. S. or state governments?)
It’s almost as if he wasn’t paying attention to the larger world until the last 10 months.
Investors who bought our debt—or T-bills.
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