Interest on the National Debt in 2018 Was 325 Billion Dollars

[MTAtech]

Ya, and then it taxed the Hell out of it.

So?
Conservatives used to argue that high taxation stifles economic prosperity. But we had decades of high marginal tax rates coupled with high prosperity. That undercuts the argument. Even JFK lowering tax rates to 70% are high by today’s standards.

Over the decades, taxes on top earners declined and so did prosperity.

 

[cpwill]

Inflation and economic growth will have taken interest rates there.

so what happens to the costs of our debt when interest rates rise?

Out of curiosity, tell me about the math regarding Japan. Surely you do remember!

I do.

 

[Kushinator]

so what happens to the costs of our debt when interest rates rise?

It goes up. What happens to revenue and the real value of debt when economic conditions drive interest rate increases?

I do.

I didn't ask you to marry me

 

[cpwill]

It goes up. What happens to revenue and the real value of debt when economic conditions drive interest rate increases?

An interesting question not least for the implied assumption. Do rising interest rates always coincide with strong economic growth?

I didn't ask you to marry me

Yet you bring up shit from years ago. Sounds like a wife to me

 

[Kushinator]

An interesting question not least for the implied assumption. Do rising interest rates always coincide with strong economic growth?

We're not going to get stagflation. I'm sorry, but it's simply not in the cards. You've been calling it for years and yet... here we are.

Yet you bring up shit from years ago. Sounds like a wife to me

Why do you refuse to learn from past mistakes? I bring it up because you said the same things years ago.

 

[cpwill]

We're not going to get stagflation. I'm sorry, but it's simply not in the cards. You've been calling it for years and yet... here we are.

The only one here making a firm prediction on stagflation is you.

Why do you refuse to learn from past mistakes? I bring it up because you said the same things years ago.

For the last time, it's not that I don't like your mother, I just don't want us to live that close to her, okay?

 

[Kushinator]

The only one here making a firm prediction on stagflation is you.

Absolutely. There's nothing to suggest stagflation is in the cards. Nothing other than speculation driven entirely by an ideological divide.

For the last time, it's not that I don't like your mother, I just don't want us to live that close to her, okay?

You are choosing ignorance. Just so we're clear.

My track record vs your track record... are you really claiming superiority? Because I have years of posts that back up my claims.

 

[Waddy]

Interest on the National Debt in 2018 Was 325 Billion Dollars:

A third of a Trillion dollars, by now half a Trillion Dollars a year on interest.

But I guess you can't blame them, when you're only paying 1.625%.

Revenue is only 3.5 Trillion dollars. round it up to four, and your payments may not exceed one Trillion dollars.

We can borrow maybe another five-Trillion dollars before we're maxed out and then instead of living off an extra Trillion on the credit card you have to do with forty percent less.

This is it, 2021 we can either pay the debt or go bankrupt.

Repeal the Revenue Cut ASAP.

interest on national debt - Google Search

www.google.com

us revenue 2019 - Google Search

www.google.com

What's the problem? We ain't gonna pay it back nohow. So long as we can pay the INTEREST on the debt, and keep rolling it over, we're fine. That's where the FED comes in; they HAVE to keep interest rates low so the government can keep paying that interest and rolling the debt over.

You like low interest rates, right? And isn't inflation a good thing? It sure has been for major asset classes like homes, stocks, and even autos. Isn't that the only way you can afford that inflation driven ginormous new house payment or that inflation backed ridiculously overpriced new car? And aren't you happy your stocks are at all time highs even during a pandemic? My God, man, we should all love debt !!!!!

 

[Exquisitor]

What's the problem? We ain't gonna pay it back nohow. So long as we can pay the INTEREST on the debt, and keep rolling it over, we're fine. That's where the FED comes in; they HAVE to keep interest rates low so the government can keep paying that interest and rolling the debt over.

You like low interest rates, right? And isn't inflation a good thing? It sure has been for major asset classes like homes, stocks, and even autos. Isn't that the only way you can afford that inflation driven ginormous new house payment or that inflation backed ridiculously overpriced new car? And aren't you happy your stocks are at all time highs even during a pandemic? My God, man, we should all love debt !!!!!

I like debt paid, I always feel great after paying my bills and counting the cash in my fist.

Nope, you are just a lemming flying over a cliff, the whole train, down in the Ocean, you have a bankrupt America, one that defaulted on her debt.

Sure, I'd be the first to declare bankruptcy, but instead I think we should pay.

Hmmn? That way we don't go to Hell.

 

[Tbird19482]

I like debt paid, I always feel great after paying my bills and counting the cash in my fist.

Nope, you are just a lemming flying over a cliff, the whole train, down in the Ocean, you have a bankrupt America, one that defaulted on her debt.

Sure, I'd be the first to declare bankruptcy, but instead I think we should pay.

Hmmn? That way we don't go to Hell.

The SS system holds a good part of the debt and the interest it receives goes to help pay peoples SS retirement payments

Social Security trusts, including the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds: $2.91 trillion
Have a nice day

 

[jonny5]

The SS system holds a good part of the debt and the interest it receives goes to help pay peoples SS retirement payments

Social Security trusts, including the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds: $2.91 trillion
Have a nice day

But the federal got is paying that interest by borrowing. So its just moving the harm elsewhere.

 

[Waddy]

I like debt paid, I always feel great after paying my bills and counting the cash in my fist.

Nope, you are just a lemming flying over a cliff, the whole train, down in the Ocean, you have a bankrupt America, one that defaulted on her debt.

Sure, I'd be the first to declare bankruptcy, but instead I think we should pay.

Hmmn? That way we don't go to Hell.

we're already there. ..... we're already there.

 

[Vadinho]

I’m sure there also will be cats and dogs living together.

Your warning reminds me of the dire warnings about inflation -- from the Ron Paul/Glenn Beck types bellowed in 2009. Even the conservative monetary economist Allan Meltzer warned that we would become "inflation nation."

Yet, none of the catastrophes occurred — low inflation, a strong dollar and no high interest rates for over a decade.

it goes further back than 2009. As a college student in the 70s, standard macro taught us the same thing. The Phillips curve appeared to explain it mathematically. But it never happened. Why? Because those old ideas were based on the gold standard currencies and economies, thats all over with but we have yet to accept the reality of it. That is why MMT is called quackery even though all it does is describe our money system as it works today. Its scary really just how politicized economics is as a discipline. You want to justify your bias? Buy yourself an economist, he or she will present you with bars and charts and graphs and moral crossroads for as much dough as you want to throw at them.

 

[Vadinho]

But the federal got is paying that interest by borrowing. So its just moving the harm elsewhere.

Only because we set up the Fed and Treasury to borrow money instead of just create it with no interest paid to anyone. Who has the sole right to issue currency? You got it, the Federal Government. How can a body that can create money ever run out of money it alone can create? Inquiring minds want to know.

 

[Exquisitor]

we're already there. ..... we're already there.

Sorry, if we screw up this planet, there won't be anywhere in Creation we will be able to go, it will be the second death for us all.

 

[Exquisitor]

we're already there. ..... we're already there.

The miscreants on this planet were rounded up from all over Creation and told, "You have this one chance."

 

[post]

Remove the cap protecting the bulk of high income from social security tax and pass a wealth tax on $500 million assets
and higher, at least attempting to balance expenditures with revenue.

The Fed - Distribution: Distribution of Household Wealth in the U.S. since 1989

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

 

[Waddy]

The miscreants on this planet were rounded up from all over Creation and told, "You have this one chance."

debt isn't going to ruin the planet. Might srew up our finances for a while, but we'll get past it.

 

[post]

debt isn't going to ruin the planet. Might srew up our finances for a while, but we'll get past it.

Ignored is the fact the top one percent of U.S. households, according to the Federal Reserve, increased their entire wealth by
about 6 percent in just the 90 days of the final, full Trumpist quarter of a year, during a worldwide pandemic.

Ironically, concentrated wealth oligarchy and the political control it buys is the core crisis, not the debt that is the result of that
control, which feeds on itself and is gathering momentum. The debt is a result of efforts to persuade the vastly superior numbers of
"have nots" to not react similarly to the bolsheviks (1), to the (Tsar-like) control that keeps them from fair compensation for their work and spends and spends on military and military "expeditions" only further enriching the wealthiest. The debt is a combination of a bribe described as social welfare, socializing the losses of the oligarchs to preserve their private profit, and freakishly large military expenditures, example, F-35.

U.S. Defense Spending Compared to Other Countries

The United States spends more on defense than the next 10 countries combined.

www.pgpf.org

(1).

Russia under Vladimir Putin - Wikipedia

en.wikipedia.org

"... Putin invited the Romanov imperial family to return to Russia in July 2015. "

 

[Waddy]

Ignored is the fact the top one percent of U.S. households, according to the Federal Reserve, increased their entire wealth by
about 6 percent in just the 90 days of the final, full Trumpist quarter of a year, during a worldwide pandemic.

Ironically, concentrated wealth oligarchy and the political control it buys is the core crisis, not the debt that is the result of that
control, which feeds on itself and is gathering momentum. The debt is a result of efforts to persuade the vastly superior numbers of
"have nots" to not react similarly to the bolsheviks (1), to the (Tsar-like) control that keeps them from fair compensation for their work and spends and spends on military and military "expeditions" only further enriching the wealthiest. The debt is a combination of a bribe described as social welfare, socializing the losses of the oligarchs to preserve their private profit, and freakishly large military expenditures, example, F-35.

U.S. Defense Spending Compared to Other Countries

The United States spends more on defense than the next 10 countries combined.

www.pgpf.org

(1).

Russia under Vladimir Putin - Wikipedia

en.wikipedia.org

"... Putin invited the Romanov imperial family to return to Russia in July 2015. "

of course the rich get richer. they know how to manipulate the system. That's why they're rich.

 

[nvflash]

The Fed is buying most of our debt, by inflating the currency.

Not necessarily a bad thing, as the Fed returns it's profits to the US Treasury yearly in remittance payments.

So long as inflation does not run out of control, or our National Credit Rating is not cut, we'll be fine, but no one really knows how all of this is going to work out. The ratings agencies could cut our credit rating, we could have a failed treasury auction, we could have both of those due to some unforeseen event.

Russia could demand Gold and Silver in return for it's petroleum products, OPEC could demand a basket of currencies as settlement for it's petroleum products, regional or world confits could destroy trade and stability. Natural disasters could destroy GDP, trade, and stability.

Really, no one can predict all the ways things could go wrong, but we motor along in spite of of all the things that could go horribly wrong because we have no choice but to inflate and hold interest rates as near to zero as the Fed can manage.

Somehow mankind muddles by.

 

[Waddy]

The Fed is buying most of our debt, by inflating the currency.

Not necessarily a bad thing, as the Fed returns it's profits to the US Treasury yearly in remittance payments.

So long as inflation does not run out of control, or our National Credit Rating is not cut, we'll be fine, but no one really knows how all of this is going to work out. The ratings agencies could cut our credit rating, we could have a failed treasury auction, we could have both of those due to some unforeseen event.

Russia could demand Gold and Silver in return for it's petroleum products, OPEC could demand a basket of currencies as settlement for it's petroleum products, regional or world confits could destroy trade and stability. Natural disasters could destroy GDP, trade, and stability.

Really, no one can predict all the ways things could go wrong, but we motor along in spite of of all the things that could go horribly wrong because we have no choice but to inflate and hold interest rates as near to zero as the Fed can manage.

Somehow mankind muddles by.

That inflation has hit major asset classes like home prices, and even car prices. It's why the stock market is at record highs during a pandemic with poor earnings. Too much cheap money that has to go somewhere.
But so long as we can pay the interest we will continue borrowing. If you ever see oil traded in anything but dollars we have a problem.

 

[jonny5]

Remove the cap protecting the bulk of high income from social security tax and pass a wealth tax on $500 million assets
and higher, at least attempting to balance expenditures with revenue.

Why?

 

[MTAtech]

But the federal got is paying that interest by borrowing. So its just moving the harm elsewhere.

The carrying cost are about 6% of GDP, which is quite doable.

 

[nvflash]

What would be the yearly interest payments on the national debt if rates went up as little as 2%?