- Joined
- Dec 9, 2009
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Hmm. That is worrying indeed. At this moment, the government with it's huge outstanding debt can ill afford to be paying increased interest rates on that debt. Assuming, of course, that increased interest rates are tied to inflation (they both go up together?).
There in lies the problem that most people don't understand. Debt is financed at current record low interest rates and when those interest rates rise the interest on the debt will rise as well. Current debt service is the fourth largest budget item and soon will exceed the amount spent on National Defense which is the requirement of the Federal Govt. What is wrong with people who cannot see the problems this debt service creates?