Minatomirai 21, newly developed bayside district in Yokohama, Japan. Photo: Gleam [CC-BY-SA 3.0] via Wikimedia Commons
Let’s face it. The U.S. government is never going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year.
A lot of interest.
If the Federal Reserve raises the Federal Funds Rate, which is the interest major banks charge each other for overnight loans, to 3.5 percent and sells its federal securities into the market, as it is proposing to do, the projected tab will be $830 billion annually by 2026. That’s nearly $1 trillion owed by the taxpayers every year,and that just covers interest.Continue reading →