The US federal gov will pay somewhere between $1.2 trillion and $1.6 trillion in interest payments on the debt this year. It will be the largest expenditure item on the budget.
by wakeup2019
The US federal gov will pay somewhere between $1.2 trillion and $1.6 trillion in interest payments on the debt this year. It will be the largest expenditure item on the budget.
by wakeup2019
6 comments
Exhibit number one for high rates being directly stimulatory.
If you think this is a taxation issue, consider this: If it was magically possible for the government to fully confiscate Google/Alphabet and somehow turn its current market cap into cash, that would cover its interest payment for one year.
Next year, Google would be gone, and the government would need to confiscate another trillion dollar business in order to just pay for the interest. After the liquidation of Alphabet/google, there would only be 4 other trillion dollar companies left for the government to fully confiscate.
There is no way for the government to tax its way out of this.
Stupid question: Who does the federal government pay interest to? Isn’t it to the Federal reserve? And if so, can the Federal reserve just give/loan that interest back to the government through quantitative easing?
I have a feeling that if a default was going to happen, the US will have a nice PR team to explain to the public that, ppl are no longer entitled to social programs like Medicaid and Social Security. Does anyone remember Nixon and his speech in 1971? I rest my case (🎤drop).
Where should I park my assets for the next great depression?