Could the US economy withstand an 8% rate on ten year notes.

Coinstartled

That would equate to appx $1.68 Trillion a year in debt servicing cost once the current $21T in debt had been refunded.

Far fetched? That was the rate during the screaming stock market rally and crash in 1987.....of course the national debt was only a tenth as high.

cohodk

Not far fetched at all. I think smart money would welcome 8% rates.

MsMorrisine

Can it?

it has survived worse.

courtesy the St. Louis Fed

and the 30 year

note: you don't inflation adjust percentages.

unadjusted gold from you know who

and inflation

derryb

@Coinstartled said:
. . . once the current $21T in debt had been refunded.

Good luck wid dat.

MsMorrisine

come on hyper inflation!

MsMorrisine

@derryb said:

@Coinstartled said:
. . . once the current $21T in debt had been refunded.

Good luck wid dat.

they need some 4% 100 year

Coinstartled

@derryb said:

@Coinstartled said:
. . . once the current $21T in debt had been refunded.

Good luck wid dat.

Refunded....not retired.

At least with Morrisine on board, we would never be in uncharted territory.

VanHalen

@Coinstartled said:
That would equate to appx $1.68 Trillion a year in debt servicing cost once the current $21T in debt had been refunded.

Far fetched? That was the rate during the screaming stock market rally and crash in 1987.....of course the national debt was only a tenth as high.

With our debt load rapidly heading to $30 trillion? No, we'll never see those rates again. Ever.

Seeing the historical average of ~5% won't happen for at least a quarter century. All the balls can stay in the air that long.

MsMorrisine

@Coinstartled said:

@derryb said:

@Coinstartled said:
. . . once the current $21T in debt had been refunded.

Good luck wid dat.

Refunded....not retired.

At least with Morrisine on board, we would never be in uncharted territory.

And the light hits me on this one.

Can it survive with $20T in debt to keep refloating?

No USA chart for that.

In much older threads I relate the story of the dollar rise on our credit downgrade. People went into treasuries, too.

There is a lot of money out there and too few places to put it.
One clear breaking point is the point where the surplus money has found a happy home in assets other than our debt, and even more so outside any governmental debt.