by Greg Krehbiel on 25 September 2013
I’ve assumed for years that the reason the Fed is so desperate to keep interest rates low is the size of the U.S. debt.
If interest rates increase, the cost of servicing our insane debt is going to increase as well.
… if interest rates went back to a more normal level of, say, 5.7 percent, 85 percent of all personal income taxes collected would go to servicing the debt.
I’ve often wondered why few people comment on this, and I’m surprised to hear it called the “hidden agenda.”
-- 2013-09-25 » Greg Krehbiel