Author Topic: Government Day-to-Day  (Read 13996 times)

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Offline Gorgeous Graham

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Re: Government Day-to-Day
« Reply #360 on: May 13, 2020, 08:05:43 pm »
Scratch that - it will cost absolutely nothing:

"We anticipate that debt charges will not go up, which is surprising and counterintuitive," Giroux said. "Interest rates are so much lower than what we anticipated them to be just two or three months ago. It doesn't cost that much to finance that growing debt.

"Is the government in a worrisome position right now? The answer is no."

https://www.cbc.ca/news/politics/federal-deficit-higher-than-252-billion-1.5566768

Of course it will cost money, a ton of money.  Interest rates are extremely low now.  But likely after 2-3 years rates will start rising.  We're not going to be paying this 1 trillion back any time soon, if ever.  You don't borrow a trillion dollars and not pay it back for decades if at all without paying a crapload of interest, and then interest on the interest which compounds.

Also, see my signature.  I'm usually right about this stuff.  From your link immediately following your quote that you conveniently left out:

"He [Giroux] said the debt load could become "unbearable" in the event of a sizeable spike in interest rates and added the prospect of such an increase is "concerning"."

See.

If the deficit is 1 trillion we'll be more than doubling our federal debt.  We're screwed.  Every day we're in lockdown we're loading more debt onto the heap.  Not much we can do though.
I can tell how good of a person you are by how you treat the people you disagree with.
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