Hey Big Spender! US Gov’t Pays $3 BILLION In Interest Per Day (Federal Unfunded Liabilities At $219 Trillion While Total US Assets At $213 Trillion)
The US government now pays out on average $3bn in interest expenses per day…If the Fed cuts interest rates by 1%-point and the entire yield curve declines by 1%-point, then daily interest expenses will decline from $3bn per day to $2.5bn per day.
So they’ll cut interest rates and kick the can down the road. Just like always. But if you somehow manage to kill off the government and military retirees early who are the bulk of the “unfunded liabilities”, you shrink that deficit. I wonder how they would do that? Anyone want to take a jab at it?