[shookness]

Fracking companies are facing a ticking time-bomb of debt:

http://www.artberman.com/wp-content/uploads/HGS-11-SEPT-2017...

http://www.artberman.com/alternative-facts-about-opec-u-s-sh...

[njarboe]

Along with the US national government. About $17 trillion not owed to itself. Added 0.7 trillion in 2017.

Cost to finance $17T per year at various interest rates (today's average rate on the US debt is about 2%):

rate, cost($B), % of 2017 Fed income

2%, 340, 15%

3%, 510, 22%

5%, 850, 37%

8%, 1360, 59%

10%, 1700, 74%

As you can see by this chart (sorry about the formatting), the Fed has to keep interest rates low or the US will have little choice but to default on the debt.

I think a lot of people who ponder such things have concluded that the Fed will keep the interest rates low and the US will/are fudge/fudging the inflation numbers so that the Fed can still claim they are hitting their 2% target even though asset prices go through the roof. Who knows what the end game on such a plan will be, but some form of hyperinflation is not out of the question. All those people who are too scared of losing value on investments and just parking their savings in cash, will be very disappointed and confused if that happens.

[grouseway]

But how much of the debt is paid at the current interest rate?

Isn't there a bunch of 10 or 30 year treasuries that were issued years ago will be paid out at their historical rates?

[rrggrr]

Does this include state and muni debt? I imagine not.

[DSingularity]

Where are you reading about this? Who computes US inflation and how do they do it?