The government borrows by selling mostly long-term bonds with an interest rate of around 4% to 5%. The government should borrow by selling more short-term bonds with an interest rate of 0.25% to 2%. Paying 2% instead of 4% on a $14 trillion debt would save $280 billion per year.
Showing 2 ideas for tag "interest rates"
Save money by paying down the debt, and don't let default happen (or else interest rates rise, and the US debt will crush us!). The equation is taxes on income are source of funding for Govt. Currently govt is working on the wrong part by thinking to reduce Soc Sec, Medicaid, which help people, while ignoring the fact that TWENTYFIVE PERCENT of workers are UN/UNDER-EMPLOYED!! (9% unemployed, 17% underemployed = 26%) Now... more »