I'LL TAKE UNSUSTAINABLE FOR $200 ALEX
1/4 Point Fed Rate Hike Added $50 Billion To Interest Cost Annually
The government's VISA bill has gone up. Senator David Perdue breaks down the numbers.
The national debt is projected to hit $30 trillion in 2025. We currently pay close to $300 billion annually with record-low interest rates. At some point, unless we are actually Japan, rates have to rise. To be clear, we are talking about paying interest on money we have already borrowed. So a $20 trillion national debt financed at 5% (the historical average) translates into $1 trillion in interest owed every year, which would make it the single largest budget line, well ahead of defense, Social Security and Medicare. Total federal tax receipts are $3.3 trillion, so the interest cost on money we have already borrowed would consume 30% of the $3.3 trillion. Thirty percent. 30%.
How do you say 'unsustainable' in a language that Washington understands.
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US DEBT CLOCK IN REAL TIME: USDEBTCLOCK.ORG
Senator David Perdue (R-GA), a member of the Budget Committee, talks directly to Georgians about the interest costs associated with Washington’s skyrocketing debt. This is the third installment in Senator Perdue’s budget video series on the national debt.