The Tea Party is shutting down the government. They stated that was their goal early on. How much $$$ do the Koch brothers stand to make if the U.S. credit rating is harmed by the current budget crisis?
See below the squiggle.
Lets say you have 1 billion dollars of cash that you want to invest in long-term securities.
What if you could raise the interest rates on the U.S. treasuries that you want to invest in?
Current 10-year note yields are around 2.6%
What if you could raise that interest rate from 2.6% to 4.6% or even 8.6%?
Well on a $1 billion purchase of treasuries, you would be making an additional $20 to $60 million dollars PER YEAR.
How much money have private domestic billionaires been spending on treasuries lately?
not much, it has actually declined by over 100 billion dollars in the last few years.
if you want to finance the sale of the housing market that you paid cash for at the bottom of the real estate collapse, you get to receive 8 or 10% on your 30-year loan on top of the higher sale price value!
A U.S. Default Seen as Catastrophe Dwarfing Lehman’s Fall
If 30-year mortgage rates climbed to 6.5 percent from 4.5 percent, a borrower who can now afford the monthly payment on a $200,000 loan would only be able to take on about $160,000 of debt when buying a property, forcing down sale prices.
If you want to bankrupt the United States and force Social Security and all other major social programs to collapse, (and we know that they do!), then increasing the amount that the U.S. pays each year just to maintain its debt load will help you to achieve your goal!
Skip ahead to time = 2:45
If you want to recoup your 200 million dollar investment in Tea Party extremists and motivate a core group of extremists who want to shut down government, then you can re-invest a few billion dollars in the most secure long-term treasuries after you shut down the government and you will make hundreds of million MORE dollars back.
Simply by raising the interest rate
you don't have to worry about increased taxes to pay for Social Security, Universal Health Care, Medicare/Medicaid. . .
AND you don't have to worry about government restrictions on your Pipelines and coal industries from destroying future generations of Americans through global warming!
It is really important to understand where we really are in this country with wealth inequality and the subsequent power inequality in a post Citizens United America.
George Carlin, New York City Circa 2005 "Life is Worth Losing"
4:02 PM PT: My sincere gratitude to Bernie Sanders and the caring community that participates on this important information portal. We don't always agree. . . in fact, we oftentimes fight tooth and nail, but at least we actually care about this country and the welfare of the human family.