Quote:
Originally Posted by tabs
There is an old saying. Owe a little and the bank owns you, owe the bank alot and you own them.
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It's one thing when you take debt on to pay for quality investments, but another when the debt is used to pay for trinkets that depreciate rapidly, particularly when that debt will be around around far after the trinket or war is ancient history.
Funding for the Treasury Department (pays the interest on the $9.1 trillion total debt) is smaller only to Social Security, Department of Defense and Health and Human Services.
Based on that, we should be very thankful treasury rates are really low. If rates reached only 9%, the Treasury Department budget would balloon to almost $900billion making it the single largest outlay for the United States.
Basically, the US has a lot of debt in an Adjustable Rate Mortgage. Like many unwise Americans, the US cannot afford a rate reset to market levels.