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In January of 2000, the average interest rate was around 6.6 percent; today, recent estimates place average interest rate on U.S. debt at 2 percent. To appreciate the scale of this difference, think of it this way - we are estimated to spend $237 billion in interest in 2014, but in an average interest rate environment that interest cost would be closer to $740 billion, or close to 75 percent of our entire discretionary budget. |
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