Anthony M. forwarded this link: The Fed’s ‘hidden agenda’ behind money-printing. Here is the crux of it: “The CBO estimates that by 2020 total debt held by the public will be $16.6 trillion as a result of the rising accumulated debt. Do the math: If we were to pay an average interest rate on our debt of 5.7 percent, rather than the 2.4 percent we pay today, in 2020 our debt service cost will be about $930 billion. Now compare that to the amount the Internal Revenue Service collects from us in personal income taxes.
In 2012, that amount was $1.1 trillion, meaning that if interest rates went back to a more normal level of, say, 5.7 percent, 85 percent of all personal income taxes collected would go to servicing the debt. No wonder the Fed is worried…”
Items from The Economatrix: