[simonblack]

Increase that interest rate just 1% to 2.5%.

Then the interest payments are the same number as the over-bloated defense budget: 750 billion a year.

So, the old question: Guns? Or butter?

An aside:

In my lifetime, the highest interest rate was roughly 20%. That would cause monetary collapse in the US today with an interest load of 6 trillion bucks a year.

[notch656a]

I'm with you that debt could become a liability and it would be wise to balance the budget. On the other hand, ye old money printer can always just buy it out :/

[simonblack]

On the other hand, ye old money printer can always just buy it out :/

Tell that to the folks in Zimbabwe. :D