Wednesday, January 18, 2017

Interest payments on federal debt

The top chart is Fred, it days Congress pays 2.5% of GDP on interest payments.  CEPR says only 1%.

CEPR doesn't not count lending fro social security to Congress, and it does not count the round trip inyerest payments made to the Fed.

SS lending has tyo be counted as we are all retiring and SS does not seem like a general budget item.

The round payments to the Fed should be accounted for as they inhibit the Fed's ability to react.

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