Courtesy of Mish.
In response to When Will Interest on US National Debt Exceed $1 Trillion some readers objected stating “things are different now”. I had to laugh at that.
Others stated that I ignored duration. I did, but I did post results at various interest rates, one of them optimistically assuming rates would stay at current levels.
For ease in discussion, here is the chart again, with my original “fed is in a box” claim. An analysis of “debt duration follows”.
Projected Interest at Various Rates
Hidden Agenda
The current blended rate of interest on the national debt is a mere 2.4% according to the CBO.
The “optimistic” projection of $668 billion assumes the rate will stay below 3.1% through 2020.
Shifting Goalposts
Really think the Fed is going to hike? They know they can’t, and the Fed is disingenuous as to why.
A year ago the Fed was discussing 6.5% as a trigger point.
In December, the Wall Street Journal noted the Fed’s Shifting Unemployment Guideposts …
