Skip to comments.US severely exposed if rates rise: Erskine Bowles
Posted on 02/03/2014 7:57:47 AM PST by Rusty0604Edited on 02/03/2014 9:19:23 AM PST by Admin Moderator. [history]
The United States spends about $230 billion a year in finance payments to creditors—a level that could more than double if interest rates returned to more normal levels, anti-debt crusader Erskine Bowles warned on Monday.
If interest rates were to return to a median level they were in the 1990s, we'd be spending not $230 billion a year but $650 billion a year," the former co-chair of the president's debt commission said.
(Excerpt) Read more at cnbc.com ...
Tell us something we don’t already know. Gee, what a precient observation. BTW, interest on the debt last year was almost 500billion and the jackass in the whitehouse wants to raise it much farther.
Which is precisely why the Fed will have to continue to buy treasuries to keep interest rates low. We have painted ourselves into a corner.
The Obama administration warned on Monday it could start defaulting on the government’s obligations “very soon” after hitting a limit on the national debt later this month.
Treasury Secretary Jack Lew said the federal government should hit the ceiling by the end of February unless Washington raises the nation’s limit on public borrowing.
The federal government would then burn through its remaining cash more quickly that it would at other times of the year because the Treasury will be issuing tax refund checks, Lew said.
Default, dear Brutus, is not in our stars, but in our future
Gee... whenever we TEA Party types bring this up... we are wackobirds and wackadoodles for thinking that way.
Simpson-Bowles is a very reasonable plan. I wish Republicans would support it.
Yea, this guy is a Democrat so it’s OK.
That’s why packing the Fed moved up on the Democrap priority list.
Gee this was brought up when Perot ran in the nineties. Glad you can now see it.
Bowles - It’s the coolie labor rates and pollution, stupid.
What’s 5% of $17,000,000,000,000?
Don’t need a PhD in economics to know this is a problem...
So what do I care if the global economy collapses and the Federal Reserve doesn't get money from bogus loans back? BRING IT ON !!
because the Treasury will be issuing tax refund checks, Lew said.
Along with hefty EICs, a completely misapplied federal welfare system.
Simpson-Bowles doesn’t address Medicare/Medicaid, the biggest drivers of our debt.
Massive debt is going to crush us at some point. It’s a ticking timebomb.
Politicians of both parties use debt to buy votes and will not stop spending until they are forced to do so by a debt service crisis. We are screwed.
And the debt will continue to increase by $600 billion or more per year, especially since we just suspended sequestration for two years with the Ryan-Murray deal.
$17 trillion grossly understates the real amount of debt (by over $100 trillion) when the unfunded liabilities are included. See bottom line in link:
Sequestration was just another political hoax on a gullible public that deserves the government it votes for.
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