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To: Gaffer

Interest payments on the debt is the ticking time bomb.

For the above board debt of 16 trillion, it is about 250 billion a year. That is with very low interest rates. If interest rates rise, there will be big trouble.

That’s as much as the combined health and human services, vet affairs, HUD, and education budgets combined.

Double the interest rate to normal historic averages, and something has to give. You can’t borrow from sources you will be already unable to pay.


9 posted on 01/09/2013 3:40:30 AM PST by xzins (Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
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To: xzins
You can’t borrow from sources you will be already unable to pay.

Actually, the Obama Government has found at least a partial way around this. It involves a conspiracy between the Federal Reserve, the US Treasury and the Bureau of Printing and Engraving. Years ago, Treasury Bills were auctioned off once or twice per year. Under Obama, these continued, but frequency increased, almost to a monthly basis. Who's buying them all? Remember, sales of these T-Bills and bonds are what's financing the debt, and making it all "legal." How does the issuer get paid? From scrip money the government prints up. The whole process is a scam, supposedly legalizing debt that the US incurs by something represented to have value. My guess is Obama's Trillion Dollar Coin will be used to back $1Trillion in new T-bill debt....

10 posted on 01/09/2013 4:08:00 AM PST by Gaffer
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To: xzins
If interest rates rise, there will be big trouble.

When...

13 posted on 01/09/2013 4:39:43 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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