Gold, page-2413

yummy

If the Fed was truly "desperate", I think that we would have seen them do something like ramp up QE again. But they aren't really doing anything except watching and waiting. Given the mixed signals and the pressure of the expectations on them, they appear remarkably calm.

"US debt 19,600,000,000,000. 0.25%interest rate rise equals extra cost of ............. mind blowing really."

Not really.

Given the net debt of $13 trillion (the US government owns a large portion of its own debt), an automatic increase of the interest bill by 0.25% will cost the US government $32.5 billion a year. This is a gross simplification because the term structure of US government debt is spread out over thirty years and is mostly locked in a fixed rates. So only a small portion is repriced each year. The US Treasury and the Fed have time on their side, and no immediate reason to panic.