Senator
Thinks s/he gets paid by the post
Yes, inflation will make paying old debts a piece of cake. However, if you still need to borrow money and the new debts now have that higher interest rate, how do you unwind it?
Of course, one can stop getting new debts, but what is the chance of that? If you were able to not borrow money, you would not have problems in the first place.
To keep interest rates low for the Fed, I have heard that GS is paid to purchase treasuries from the Fed at the Auction at a low interest rate. From there, the Federal Reserve buys the debt back.
If it was to go to a full auction, the debt interest may be quite a bit higher.
So, the interest on the National Debt can be manipulated.
Not to derail my own thread, but this struck a small nerve...OPM took it upon themselves to "increase" our pension checks by a total of more than $400 a month, by reducing the Federal withholding. Yet every online calculator says the Amethysts will not see any tax savings at all, and may even pay a bit more.
Are you paying more taxes due to the SALT limit? I believe you have a $10K max deduction, whether you are married or single. I can see a divorce strategy that could be used and would help some tax situations.
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