farmdude - 4/25/2018 16:35
Did some research. Back in 1977 rates were 7%. By 1985 they were 17%. Backed off but were still double digits through early nineties. In 2001 plus they were 6% or less. I see agweb has an article about interest rates that is very interesting. Said cheap money is over. If all we have is a 1 percent increase that would be nothing to worry about. But if went up like the eighties then it would be disasterous. My Dad paid 9% on operating loans for many years. Dont think he seen anything this cheap except when he first started farming in the fifties.
Click on the link above on the history of the interest rates that the fed reserve sets. The Pres doesn't set them but a private bank.
If the rates go much higher just think how quick it's going to bankrupt the country as the interest on the national debt will increase substantially. Right now it's around $310 billion a year at around the interest rate good article here.
https://www.thebalance.com/interest-on-the-national-debt-4119024
In this article it talks about rates on 10 year bonds are not gonna go above 3% until sometime in 2019 as it was written back in early March. Well it's already above 3% one month later.
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