That's one way to answer a simple question, obscure it with irrelevant math, mis-represent the position of your political opponents, blame shortfalls on inadequate tax revenues and incite class warfare, all while failing to acknowledge that we're printing money to fund our own debt or that revenues have been fairly constant and that it is government intrusion, power and cost that has been growing exponentially.
That's what I'd expect to hear from someone that doesn't give a shit how much debt he buries our next generations under. I really do look forward to Obama and Democrats running on the platform "everything is fine" while the likes of Bruce try to defend the policies that have turned a recession into a double-dip depression. Yep, that's going to be quite a spectacle. > > On Jul 1, 2011, at 7:14 AM, mex sara wrote: > > > so in the paper today i read if you need to pay back a trillion dollars and > > you to it at a million an hour ... > > > > it will take a one hundred years ... is this true ? > > No: > > Since we're talking about a trillion dollars, I assume we're dealing with > national debt issues, so I plugged in the interest rate the US is currently > paying to borrow money: 3.98%. > > <http://tinyurl.com/3m4kcje> > > into a basic loan calculator: > > <http://tinyurl.com/6jfcczv> > > comes out to $4,630,474 an hour, with interest. > > Total loan cost over the lifetime: > > $4,056,295,270,457 > > Which, despite the size, isn't a bad deal at all. > > This interest rate is only marginally ahead of the current inflation rate of > 3.57%; crudely calculating inflation to remain constant over the hundred > years means at the end of the loan, the 1 Trillion you've borrowed is worth: > > $3,840,858,037,822, or nearly four times the loan amount. > > The lenders are only making $215,437,232,635 in crudely adjusted dollars; > just over 2 billion a year...pretty low returns. Any private borrower would > KILL to get such low rates; they'd consider it essentially free money. > > Since it's the lenders who set the rates for T-bills, what this means is that > all the theatre in DC arguing over who can throw the poor, aged and infirm > overboard the farthest and fastest is merely sadistic theatre on the part of > the 1%-ers; ACTUAL investors are not worried about the US deficit or debt at > all, because if they were they'd be charging higher interest rates; T-bill > rates are the lowest they've ever been. > > -- > Bruce Johnson > University of Arizona > College of Pharmacy > Information Technology Group > > Institutions do not have opinions, merely customs > > > -- > You received this message because you are subscribed to the Google Groups > "StrataList-OT" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/stratalist-ot?hl=en. > > > Francis Drouillard, PE Novato, CA 94945 -- You received this message because you are subscribed to the Google Groups "StrataList-OT" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/stratalist-ot?hl=en.
