Sen. Perdue: The ‘merry-go-round’ of artificially low interest rates ‘is going [to] stop’
When interest rates on our debt suddenly balloon, our nation will be facing even greater economic difficulties unless Congress enacts a solution. Fortunately, there are members of Congress like freshman Senator David Perdue of Georgia who know the value of a dollar and how frivolously we as a nation are managing our books.
Still, the debt doesn’t worry Perdue as much as the interest liability does. Should those rates rise—and Perdue is confident they will—he predicts the country won’t be able to make the minimum interest payments.
For the past seven years, the Federal Reserve has targeted rates at an artificially low level, around 0.25 percent, in hopes of easing America’s climb out of the subprime downturn. But in December, and for the first time in almost a decade, the Fed raised interest rates a quarter of a point, to 0.5 percent…
Still, Perdue says he’ll keep raising the alarm because, he insists, the national debt is the biggest threat facing the United States. “This merry-go-round is going [to] stop,” the Georgia businessman warns, “and when it does, we will end up in a very bad place unless we find a way to control it.”
The U.S. can’t afford to keep putting bills on a tab it can’t pay off and may not be able to manage should the interest rate on that tab suddenly skyrocket in the months and years ahead. Click here to help Tea Party Patriots urge Congress to enact a commonsense spending plan that would balance our budget within five years!