I happen to be in Denver today...the day Mr. Obama is signing into law the new spending/stimulus bill. As I was walking back to my hotel it dawned on me the amount of interest that I have heard this will cost for the $825,000,000,000.00. So I looked it up on the internet and found this info...
"In a letter to Rep. Paul Ryan (R-Wis.), ranking member of the House Budget Committee, Congressional Budget Office Director Douglas Elmendorf reports the interest cost would be $347 billion over 10 years, meaning the $825 billion plan could cost as much as $1.172 trillion."
I am no banker, maybe Doug (Fabienne's, one of my five favorite sisters, husband) could explain it. Isn't this about a 40% interest on this package?! Who in their right mind would sign on to such a thing except when dealing with loan sharks?
Surely I must be missing something so I am not jumping to conclusions. I would have posted this on my blog but feared low readership may not have produced an answer.
2 comments:
The numbers boggle my mind, but since Alan is asking were the $ is coming, I wonder, like Brian, were that interest figure comes from. Based on what percentage? It may be silly to talk interest if we don't know to whom and under what conditions we will be paying it.
The thing is, we should not be borrowing at all. I think we ought to have a balanced budget, except in times of national emergency, and no, I don't think this is a national emergency.
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