Monday, September 19, 2011

Obama to Lower Interest Expense by $430B?

I saw this number in various news summaries, but no details (eg, here and here). I suppose if you use future values instead of present values, when you lower the deficit by a dollar in some future year--say 2014--you generate an almost infinite amount of interest savings on our perpetual debt.

1 comment:

Anonymous said...

Or if you use present values if the discount rate is low enough, right?