Sunday, August 26, 2012

Simple and to the point analysis of US Budget


And now just imagine if our interest rates increased to reflect the inflationary policies of the Fed.   For simplicity sake just assume the debt starts costing 10% interest or 1.6 trillion on the current debt balance and you have where we should be if the fed were not financing the deficit right now.  The total income tax collections would barely cover the interest on the debt.

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