Don't try this at home

[Clocker]

Within 5 years, every new dollar that the federal government borrows will be used to pay interest on the federal debt. So says the U.S. Treasury Department’s Office of Debt Management.

Did they say DEBT MANAGEMENT??? Who said bureaucrats don't have a sense of humor.

https://fee.org/articles/the-us-is-5...ral-heres-why/

[lamboguy]

Originally Posted by Clocker

Within 5 years, every new dollar that the federal government borrows will be used to pay interest on the federal debt. So says the U.S. Treasury Department’s Office of Debt Management.

Did they say DEBT MANAGEMENT??? Who said bureaucrats don't have a sense of humor.

https://fee.org/articles/the-us-is-5...ral-heres-why/

interest rates are pretty low right now. what happens if the rate moves up a little?

[Clocker]

Originally Posted by lamboguy

interest rates are pretty low right now. what happens if the rate moves up a little?

The folks at Treasury know their stuff, and try to lock in low rates as much as they can. But low rates usually go up rather than down, so odds are the 5 year window may be about the best we can hope for.

[lamboguy]

https://thehill.com/opinion/finance/...u1opyo.twitter

[porchy44]

Robert Louis Stevenson wrote, “Everybody, soon or late, sits down to a banquet of consequences.” He was right, but we tend to disbelieve him.

[lamboguy]

when you look at what corporations do when they know they are doing something wrong. such as drug companies that sell drugs for treatment that all have side effects. they put away money way ahead of time knowing they are going to get sued. when the case goes to court, they try to settle the case for less than they expected.

banks and financial institutions do the same thing. when they had the toxic mortgages, they put money away knowing they were going to get sued. not everyone participated in those lawsuits. for the ones that did sue most got settled out of court for less than what they deserved.

in our country, we are headed someday towards useless paper. there is no way we can pay back what we owe foreign countries. however we are the largest holder of gold reserves supposedly 8200 tons of the stuff. the nations that we owe the money to love gold. China, India, Saudi Arabia, Kuwait and others. at some point of time, should the price of gold get high enough, those holding the debt are going to call their markers in and we will pay them with the gold we have.

where ever our gold happens to be stored is being watched and guarded like we all can imagine.

[barahona44]

Originally Posted by lamboguy

in our country, we are headed someday towards useless paper. there is no way we can pay back what we owe foreign countries. however we are the largest holder of gold reserves supposedly 8200 tons of the stuff. the nations that we owe the money to love gold. China, India, Saudi Arabia, Kuwait and others. at some point of time, should the price of gold get high enough, those holding the debt are going to call their markers in and we will pay them with the gold we have.

where ever our gold happens to be stored is being watched and guarded like we all can imagine.

If my math is correct, the value of 8200 tons of gold at 1000 dollars a troy ounce is about 290 billion dollars.Every $100 rise is worth about 30 billion dollars.Foreign nations own about 6.2 trillion of USA debt.So selling all our gold at 1000 per ounce would satisfy less than 5 % of that bill.