Feds Borrow at 4% Interest on 2 Year IOU's, How Will Feds Pay 4% Interest on $25 Trillion in Fed Debts?
They were paying 1/2 of 1% in interest just a year ago. Where will the feds get an extra $875 Billion per year (an extra $5,500 per taxpayer per year)?
The US Treasury did 2 year Treasury bonds (US Treasury IOU’s) at 4% interest today at auction.
If interest rates hit 10% on fed debt… then how will they pay an extra $2,500,000,000,000 - $2.5 trillion - per year on their US Treasury debts?
Keep reading with a 7-day free trial
Subscribe to Global Community Weekly (GloCom) to keep reading this post and get 7 days of free access to the full post archives.