Posted by examinerebb on 3/5/2013 5:59:00 PM (view original):
Posted by bad_luck on 3/5/2013 5:48:00 PM (view original):
Posted by examinerebb on 3/5/2013 5:42:00 PM (view original):I doubt it. We pay $200 billion a year in interest on $14 trillion in debt.
All according to the internet, so there's that:
Agency debt went from $44 billion in 1970 to $6.5 trillion in 2006 to $7.5 trillion in 2010 (I can't find 2011 or 2012 numbers, but I can't imagine the FHA and the like have shored up their books). None of that is counted in the "official" national deficit or debt calculations, according to the Federal Reserve.
Just out of curiosity, because you haven't specifically addressed it, do you believe we, as a nation, are incapable of getting to the point where we can no longer afford the payments on the national debt?
Hmm, I'd be interested in seeing more on the agency debt. I can't imagine we have another $7.5 trillion+ out there that isn't counted in the $14 trillion over all debt amount.
I know that the treasury was buying agency bonds through the QE process. I honestly don't know if the agency bonds the treasury purchased are counted in the official calculation or not. I can only find one article, at a cursory glance, that seems to infer that it isn't. It's also fairly clear that there is an agenda behind said article, so take that for what it's worth.
Either way, I believe that the deficit/debt is worse than we all are led to believe that it is.
If the treasury was doing it, it counts in the official deficit numbers. Maybe it was the fed buying the agency bonds? They are holding a ton in order to keep interest rates down.