A Thought About The Budget Deficit I Bet Hasn't Crossed Your Mind.

I don't mean the claim by my Republican friends that federal spending under President Obama is out of control and increasing wildly. That is an outright lie that is easily enough debunked elsewhere. Almost anywhere really.

What I'm talking about are interest rates. Specifically, the rates the federal government pays to borrow money. As of the close of markets Friday, the going rate on a 10-year treasury bond was 1.47% 

Now throw this into your fact blender and shake it up. The inflation rate last year was 3.16%. Over the last 10 years it's averaged 2.43% You see where I'm going with this? Probably not. I'll spell it out for you.

Give just a quick glance to those numbers, and you'll see that the Federal Government can borrow a chunk of change, and be obligated to pay it back over 10 years in dollars that will be worth less than those it borrowed, even after interest payments. 

Which means the Feds are currently making a profit by borrowing money for 10 years. Wish I could pull off a trick like that. If it weren't for the fact they would just blow most of the cash on stupid army shit, I'd say the government isn't borrowing nearly enough.


Share on :
A Thought About The Budget Deficit I Bet Hasn't Crossed Your Mind.
A Thought About The Budget Deficit I Bet Hasn't Crossed Your Mind.
Reviewed by malaria
Published :
Rating : 4.5