[quote=DomoArigato]Rich’s article is retarded. If interest rates go up, the value of existing U.S. debt will go down and the Federal Reserve can actually buy that old debt back at a cheaper overall cost than if interest rates were to go down or stay the same. This is just a simple present value analysis.
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Absent, hyper-inflation, the debt won’t go down that much because it is very short term. Average maturity is ~4 years.
The government is currently borrowing 40 cents of every dollar it spends. We have to borrow or print a lot just to stay in business. We won’t be able to just print enough to just buy back the debt without massive inflation.
