mortgages, car loans, their credit cards, and that s inexcusable. translate that from beltway-jeezese. if that happens, the treasury department would swiftly raise the yelled on its bond offerings by a half a percentage point, why? because uncle sam has been stamped on the forehead about as a riskier borrower. the banks will see that, and prevent customers from taking their money out of the bank and putting it in those suddenly higher yield treasury bonds. so now the banks are paying more interest to keep all those deposits in their checkings and savings account, and the banks pass that interest cost on to the borrower. let s say you need a car loan. well, your interest rate is going to jump by half a point, up to about 4.5%. your monthly payment will therefore go up we calculate by about $2 a month. doesn t sound bad, but that projection is based on the median car loan in the united states, which is $10,000.
itself at some point. you know the cost of the debt and that is the interest cost and federal government equals eight percent of the budget. you have to stop that. christtian, a fox news poll about the issue and here are the results for you . ask the viewers on raising the debt ceiling and nine percent yes without recontradiction and 43 percent with spending cuts and 42 percent against it no matter what . our viewers are saying doing something without regard to spending? those are the wrong solutions. first of all. understand what the debt limit is all about. it is commitments made by this and every other previous congress and presidential administration. it would be like my deciding to take you out for dinner and reconsidering when the check comes. you wouldn t default. i would never do that and neither should the federal government. you know, if you want a conversation about spending, you need to have that
what is a good rule of thumb for consumer and country? the issue is the interest on the debt. it s getting to blow hole on the balance sheet the size of egypt. if you are borrowing money for the interest cost, good capital is not going to the economy to grow the businesses. they re saying we only pull in $2.7 trillion in tax revenue and we borrow the rest. if it gets to 20%, trending up, the interest costs. when the credit rate goes down and borrowing cost goes up and more taxpayers to spend on the bond yield. who is going to lend us the money? right. china is already saying that. trillion debt, as far as the eye can see, every year. we have to borrow that money. don t you think the lenders will turn and and say chinese are lecturing us on the spending habit. not lending to us at the moment. before they seize fannie and freddie, paulson, the former treasury secretary
what is a good rule of thumb for consumer and country? the issue is the interest on the debt. it s getting to blow hole on the balance sheet the size of egypt. if you are borrowing money for the interest cost, good capital is not going to the economy to grow the businesses. they re saying we only pull in $2.7 trillion in tax revenue and we borrow the rest. if it gets to 20%, trending up, the interest costs. when the credit rate goes down and borrowing cost goes up and more taxpayers to spend on the bond yield. who is going to lend us the money? right. china is already saying that. trillion debt, as far as the eye can see, every year. we have to borrow that money. don t you think the lenders will turn and and say chinese are lecturing us on the spending habit. not lending to us at the moment. before they seize fannie and freddie, paulson, the former treasury secretary
what is a good rule of thumb for consumer and country? the issue is the interest on the debt. it s getting to blow hole on the balance sheet the size of egypt. if you are borrowing money for the interest cost, good capital is not going to the economy to grow the businesses. they re saying we only pull in $2.7 trillion in tax revenue and we borrow the rest. if it gets to 20%, trending up, the interest costs. when the credit rate goes down and borrowing cost goes up and more taxpayers to spend on the bond yield. who is going to lend us the money? right. china is already saying that. trillion debt, as far as the eye can see, every year. we have to borrow that money. don t you think the lenders will turn and and say chinese are lecturing us on the spending habit. not lending to us at the moment. before they seize fannie and freddie, paulson, the former treasury secretary