FedGov's ARM about to reset

Don

Don

All Living is Local
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Agorism FTW!
Remember what happened to all those poor people who were conned into signing Adjustable Rate Mortgages by greedy bankers who just couldn't wait to raise the rates and repossess all those houses?

Well, those trillions of dollars FedGov owes are all on adjustable rates, and those rates are going to go up. Oops.
Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
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