The total “revenue” of the US government is [...]. Therefore, more than 30% of tax “revenue” would go to pay interest on the debt alone. Obviously, interest rates rising to 10% would see well more than half of all tax “revenue” going towards interest payments on the debt alone. And at 16% the entire tax “revenue” of the US government would go to make interest payments alone. Of course, if you consider that most of the government’s debt is at the 5-10 year duration, and that typically the yield curve is positively shaped, the numbers get a bit worse.
Answer
$3 trillion
Question
The total “revenue” of the US government is [...]. Therefore, more than 30% of tax “revenue” would go to pay interest on the debt alone. Obviously, interest rates rising to 10% would see well more than half of all tax “revenue” going towards interest payments on the debt alone. And at 16% the entire tax “revenue” of the US government would go to make interest payments alone. Of course, if you consider that most of the government’s debt is at the 5-10 year duration, and that typically the yield curve is positively shaped, the numbers get a bit worse.
Answer
?
Question
The total “revenue” of the US government is [...]. Therefore, more than 30% of tax “revenue” would go to pay interest on the debt alone. Obviously, interest rates rising to 10% would see well more than half of all tax “revenue” going towards interest payments on the debt alone. And at 16% the entire tax “revenue” of the US government would go to make interest payments alone. Of course, if you consider that most of the government’s debt is at the 5-10 year duration, and that typically the yield curve is positively shaped, the numbers get a bit worse.
Answer
$3 trillion
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it 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% would see well more than half of all tax “revenue” going t
Original toplevel document
The Magic Number Seven: Fed May Raise Rates Seven Years to the Day of Rate-Drop to 0% | The Dollar Vigilante .7 trillion, a 123% rise!
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.
<span>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% would see well more than half of all tax “revenue” going towards interest payments on the debt alone. And at 16% the entire tax “revenue” of the US government would go to make interest payments alone. Of course, if you consider that most of the government’s debt is at the 5-10 year duration, and that typically the yield curve is positively shaped, the numbers get a bit worse. And if we assumed the debt grew more – as interest rates rose – or that tax revenues fell owing to a slump in production they get worse still.
For these reasons, as well as where we pr
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.