Topic: debt crisis
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October 4, 2013 at 7:03 AM
U.S. paying more interest despite positive economic outlook
As a result of the rating on U.S. bonds being lowered after the last debt limit “crisis,” the rate the United States pays on 10-year bonds is currently 2.64 percent on any new bonds, whereas Germany, with a better bond rating, pays only about 1.82 percent. That means U.S. taxpayers are paying 45 percent more interest on any new debt issued!
Given that another round of this is probably in the offing because of Republican Party intransigence in Congress, is a class action in order (“Americans versus Ted Cruz et al”) to provide compensation for the billions of dollars of excess interest being paid? Imagine how many Head Start slots could be restored with any money saved on interest on bonds.
John Bancroft, Seattle
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