Wednesday, March 21, 2012 8:47:32 PM
@wiscesq: 10 years ago, you'd have an argument. To take advantage of lower short term rates, the treasury has been rolling long term debt over to short term debt. The result is that the government debt is now highly exposed to short term interest rate changes.
Wednesday, March 21, 2012 8:24:06 PM
The national debt is too high and is unfair to children and future generations, but this guy's analysis is simply wrong. While the government does refinance its debt to take advantage of decreasing interest rates, there is simply no reason it would refinance its entire debt if interest rates were increasing. New debt might be borrowed at the higher rate, but the interest expenses on the entire existing debt would not go up. If your mortgage rate was 5%, and the market went up to 7%, would you refinance your mortgage at the higher rate?