http://www.treasurydirect.gov/govt/repo ... xpense.htm (http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm)
Wow, that much. :shock: That interest payments has enough budget for a small country for the entire year.
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During the Clinton years, the interest rate was on 6 %, now it's almost zero. Hike the interest rate to 1 percent and with the huge debt the US have, it's mind boggling.
Wow! :shock: Solitary
The more debt we have, the more the government drives down the interest rate. Wouldn't you? You take out a mortgage at 6%. Then you take out a second mortgage at 9%. The interest is killing you, so you lower it to 0.01%. (Wouldn't you just love to be able to do that?) The lower the interest rate, the better the economy looks. (The morons don't understand that their investments become almost worthless. All they see is the curtain, not the man behind it.)
There lies the problem, interest rates can't stay low for a long periods of time. To my understanding, if there is too much money, inflation will go up and that drives the interest.
[youtube:20kz2hfq]http://www.youtube.com/watch?v=F-cki8tWbS8[/youtube:20kz2hfq]
This video pretty much explains it all.
Many people have bought homes through loans and mortgages and there is a big concern the bubble may burst at any time.
That's why I no longer have a mortgage. When interest rates take off, the banks will figure a way to raise the rate on fixed mortgages too. (They did after 2008.)