How do current interest rates compare to past rates?

Here’s a chart to calibrate your perspective …

The Fed Funds Rate currently running at about zero … that compares to a historical average of about 8% … and a peak of about 18% in the Carter years.

There’s only one way to go – up.

Imagine the fiscal crisis if if the interest rate on the $16 Trillion debt slides back up to the 8% historical average … or, gawd forbid, to the Carter-level rates.

Now, that would be a fiscal cliff !

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