Japan has found a way to write off nearly half its national debt without creating inflation. We could do that too, according to PBI founder Ellen Brown.
Let’s face it. There is no way the US government is ever going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year, writes Brown.
A lot of interest.
If the Federal Reserve raises the fed funds rate to 3.5% and sells its federal securities into the market, as it is proposing to do, by 2026 the projected tab will be $830 billion annually. That’s nearly $1 trillion owed by the taxpayers every year, just for interest.
Read Ellen Brown’s latest blog post Sovereign Debt Jubilee, Japanese-Style.
Also check out these two related stories:
Dear Mr. President, Be Careful What You Wish for: High Interest Rates Will Kill the Recovery
Fed Raises Interest Rates for Second Time in 2017
Cross-posted from the Public Banking Institute Blog.
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