With a debt of $18.7 trillion, if interest rates were allowed to rise to where they last peaked in 2006, at 5.25%, that would mean nearly $1 trillion per year in interest payments owed alone on the national debt.
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The Magic Number Seven: Fed May Raise Rates Seven Years to the Day of Rate-Drop to 0% | The Dollar Vigilante!) is because of the following chart.
The last time the Fed raised rates was on June 29, 2006. At that time, the total US federal debt was $8.4 trillion. Today the total debt of the US federal government is $18.7 trillion, a 123% rise!
<span>With a debt of $18.7 trillion, if interest rates were allowed to rise to where they last peaked in 2006, at 5.25%, that would mean nearly $1 trillion per year in interest payments owed alone on the national debt.
The total “revenue” of the US government is $3 trillion. Therefore, more than 30% of tax “revenue” would go to pay interest on the debt alone. Obviously, interest rates rising to 10% w Summary
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