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To: Oeconomicus who wrote (159764)1/7/2004 4:42:19 PM
From: Randy Ellingson  Read Replies (2) of 164684
 
Well, being that I have a full-time job as well as varied interests outside work, I'll admit I don't have time to learn all the subtelties of these various categories. But am I corerct to infer that a point made by your post is that interest rate fluctuations do not change our debt burden significantly, since treasuries are a relatively small fraction of our debt?

Is there a meaningful measure of our total effective interest rate on our total debt, and if so, what would this number be?

It seems as though the US is a debtor nation because we can do better by trying to grow our economy ahead of our ability to pay, than to try to make money by loaning funds to other countries (risking default, and being in the meantime unable to use such funds for our own growth). It does seem ironic, from a potentially naive p.o.v., that while individuals are rightly be taught to avoid accruing large amounts of debt, the Federal government has few voices trying to reign in spending. How does one measure the rate of return on our borrowed money?
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