Quote:
Originally Posted by d-ray657
The more they play brinksmanship, the greater the chance of pushing up interest rates. The more money that we have to spend on interest, the less money there is to spend on those socialist ideas like social security and medicare.
Regards,
D-Ray
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Sure, there's a chance of interest rates rising, but that's a risk that our dear leaders have chosen to take, doing everything they can to keep rates as low as possible. That strategy all by itself has consequences in other areas of the market that are disadvantageous.
Rates could also rise as a consequence of the US being seen in the world market as a less worthy credit risk. This is already starting to have consequences, and some investment companies have started to divest themselves of US debt holdings.
Also, every year that we pile on additional debt also increases the share of the US budget that must be spent on servicing interest on that debt. So, pick your poison: rates increase, or the share of the budget that must go toward paying off debt must increase.
Finally, you are aware that those "socialist programs" you site are in the non-discretionary section of the budget. Unless those programs are specifically reformed, they would continue to be funded.