How are interest rates impacting US debt?

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First time in nearly four years Uncle Sam takes in more money than we spent last month.

But one month of surplus is not gonna do anything to chip away at that number on the debt.

The -- -- course exceed a trillion dollars in deficit spending for the fourth straight year and that brings us now.

Is the way because US and by way of Twitter -- You're writes the following how much money -- years hey.

-- interest on the debt.

-- -- -- This -- network with -- in -- argument -- it some pretty big numbers.

I -- -- likely -- what is it so 230 billion dollars per year we pay in interest on the debt 230.

Billion billion for that -- 6% of the federal budget.

What seems like well I earned a 100000 a year and I paid only 6000 a year in interest -- Good I can handle that but here's the big problem.

Is bit right now interest rates at the lowest level they bail and stored here that's in part because of the fact a branch of government has been keeping those interest rates low.

That is an insidious effect in which we just borrow more more because it's cheaper now.

That was twenty years ago on a far smaller number of -- But if interest rates suddenly rose by a single point if investors decided.

I'm so worried that the federal government is going to be more risk that now I need for -- -- paying higher registered for a loan the money by buying a government -- it would have one point a year.

That -- -- thirty billion suddenly -- by up to an extra 160 billion here per year.

So right now the Obama administration -- over ten years -- be paying interest of only 80900 billion.

Well certainly that's -- over two and a half trillion over ten year period.

But what if there's a true panic would have investors say you know what right now ten year treasury notes are paying less than 2%.

You've got maybe 5% -- -- -- of the trillions upon trillions upon trillions it's a scary problem.

And we don't sense it because right now the interest rates are throwing out there are a lot of what is some what you just -- however what we can say that is.

Over 45 years -- 230 billion dollars.

Over that period of -- were adding a trillion trillion dollar -- and here's -- thing it's not productive spending it's not spending that.

A business is is is putting into a new.

Division that will hire more people.

It's just interest.

Rate -- -- at a very low rate to.

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-- at noon with Cheryl podcasting yes new in the water that Mark Fox -- -- thank you -- and he's got a question what answer -- -- dot com or on Twitter at Bill Hemmer for Dennis if you want BWAY.

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How are interest rates impacting US debt?

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