Low Interest Rates Hid True Cost of Increasing Debt
April 12, 2015
House mortgage-type instrument suggested as means to pay off national debt Guest Post By Lee A. Presser Interest rates have been held artificially low by the Federal Reserve since 2008. This has had the effect of hiding the true cost of increasing debt. As interest rates rise back toward 4%, the U.S. Treasury will have less money to spend on discretionary governmental functions. The FY 2015 budget is approximately $3,900,000,000,000.00. Another way to look at that number is about $12,187.
5 Horrors of Inflation *Update*
June 10, 2009
Scroll for Updates Ronald Reagan and Jack Kemp wanted to index everything, especially Treasury notes and taxes. By “indexing,” we mean tying rates (interest and tax) to the inflation rate. Calls for indexing subsided after Reagan and Volcker did what Ford and Carter could not: whip inflation now. With a $2 trillion deficit this year and multi-trillion deficits projected as far as the eye can see, inflation will return to ravage the American consumer.
Why Focus on Government Spending?
April 1, 2009
The mounting government debt–$2.98 trillion in recent bailouts and stimuli alone–is an oppressive anchor around the neck of every American. Currently, every family of 3 is obliged to pay over $118,000 in the next 30 years. That’s a house payment with a variable-rate. In other words, the government has done exactly what helped cause the mess for individuals by borrowing beyond its means at a teaser rate of 0.8 percent. That Teaser Rate Will Skyrocket