DEBT - THE IMPACT OF SERVICE INTEREST

The producer of this video makes important points about the interest payments on the national debt that SOME of you are not aware of;

BUT I CANNOT BELIEVE THAT THE PRODUCER BLEW IT!!!!  he left out the most important point!!!

The scary issue:  what happens when the federal reserve has to raise interest rates to combat inflation?

Today, those of you with certs of deposit know they pay a measly 1% because the federal rate is less than 1%!!!!

If you are older than 45, you might remember when the Fed Rate exceeded 20% under Carter.

If the Fed Rate goes up to combat inflation , like many INVESTORS ARE BETTING ON, then the INTEREST ON THE DEBT will bring our government to a screeching HALT.

watch the video, click on (more)

Brophy Saturday 16 April 2011 - 7:04 pm | | Brophy Blog
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