One of the most difficult places to find on earth, is where to post your “fraud, waste and abuse” complaints. Sometimes it is the Office of the Inspector General. Some agencies have additional means of posting suggestions as well as complaints from the public or employees. It could be mandatory that each agency require outgoing emails to include the fraud, waste and abuse website. This will improve access to fraud reporting... more »
Low Balling the interests rates the US owes, to whom are mostly foreign countries (who get over 5%), let's average it at 3%. At 14 trillion dollars, we are paying $420 BILLION dollars a year in interest ALONE. That is just about $1,167 for every person in the United States, FOR INTEREST ALONE. We need to do everything possible to pay off the debt. How many billions of dollars can you cut from programs? The budget... more »
For every 100 basis point increase in interest rates, the interest on the $14 trillion debt increases by $140 billion. Flirting with the disaster that would be caused by a default results in less confidence by investors on the risk of Treasury securities, increasing interest rates.
We pay about 5% on long-term debt. Greece pays 15%. If we default and start paying 15% like Greece, it will cost an additional $1.4 trillion per year in interest, based on 10% times debt of $14 trillion. The additional $1.4 trillion in interest is equivalent to about 2/3 of the federal government's annual revenue.
The reward being that their annual taxes would be lowered by the amount (currently ~12% and growing) it takes just to pay interest. Obviously, if you pay ahead, you are no longer responsible for that debt interest. As an investment, it makes complete sense for anyone who can begin to do this. We don't have enough M1 or even M3 money lying around to tackle the whole debt problem, but working our way out through what I... more »
When a beneficiary is overpaid benefits they often get a couple of months to pay in full or a a small monthly deduction from future benefits. In most cases, this is used as an interest free loan. Some retiree's game the system and purposely under report earnings. If even a one percent charge was added, many would report properly and timely. We are loaning money at zero interest for fraudulant behavior.