Wednesday, February 5, 2014

Erskine Bowles: U.S. Severely Exposed If (When?) Interest Rates Rise



Erskine Bowles: U.S. Severely Exposed If (When?) Interest Rates Rise
Posted: 2/3/2014 4:59:27 EST
The United States spends about $230,000,000,000 a year in finance payments to creditors—a level that could more than double if interest rates returned to more normal levels, anti-debt crusader Erskine Bowles warned on CNBC.

To put $230 billion a year in perspective, Bowles said on "Squawk Box," it's more than the U.S. spends at the departments of Commerce, Education, Energy, Homeland Security, Interior, Justice, State and the court system combined.

"If interest rates were to return to a median level they were in the 1990s, we'd be spending not $230 billion a year but $650 billion a year," the former co-chair of the president's debt commission said.

"When you think about it, that's $650 billion that will be spent, principally in those countries we're borrowing money from, to educate their kids, to improve their infrastructure, to do the high value-added research on their college campuses, so the next new thing is created over there," Bowles said. "That's crazy."

He also said, "You're not going to have great [economic] growth until we reform our tax code to make us more globally competitive."

Bowles was President Bill Clinton's chief of staff from 1997 to 1998. In 2010, he was Democratic co-chair of President Barack Obama's National Commission on Fiscal Responsibility and Reform with Republican former Sen. Alan K. Simpson. Last week, he was named lead director of Morgan Stanley.

Erskine Bowles
Erskine B. Bowles is a co-chair for the National Commission on Fiscal Responsibility and Reform, a director the Committee for a Responsible Federal Budget, a director at the Morgan Stanley, a trustee at the Urban Institute (think tank), and married to Crandall C. Bowles.

Note: Alan K. Simpson is a co-chair for the National Commission on Fiscal Responsibility and Reform, a director the Committee for a Responsible Federal Budget, and was a member of the Iraq Study Group.
National Commission on Fiscal Responsibility and Reform is a paid for staff by the Economic Policy Institute.
Committee for a Responsible Federal Budget is a paid for staff by the National Commission on Fiscal Responsibility and Reform, and was housed at the New America Foundation.
Foundation to Promote Open Society was a funder for the Urban Institute (think tank), the Economic Policy Institute, the New America Foundation, and the Brookings Institution (think tank).
George Soros was the chairman for the Foundation to Promote Open Society.
Crandall C. Bowles is a trustee at the Brookings Institution (think tank), a director at JPMorgan Chase & Co., and married to Erskine B. Bowles.
Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank), a life trustee at the Urban Institute (think tank), Valerie B. Jarrett’s great uncle, a director at the American Friends of Bilderberg (think tank), a senior counsel for Akin, Gump, Strauss, Hauer & Feld, LLP, was a member of the Iraq Study Group, and a 2008 Bilderberg conference participant (think tank).
Robert S. Strauss is a partner at Akin, Gump, Strauss, Hauer & Feld, LLP, and a senior adviser for the Committee for a Responsible Federal Budget.
Erskine B. Bowles is a director the Committee for a Responsible Federal Budget, a co-chair for the National Commission on Fiscal Responsibility and Reform, a director at the Morgan Stanley, a trustee at the Urban Institute (think tank), and married to Crandall C. Bowles.
Crandall C. Bowles is married to Erskine B. Bowles, a director at JPMorgan Chase & Co., and a trustee at the Brookings Institution (think tank).
Lee H. Hamilton is an honorary trustee at the Brookings Institution (think tank), and was a co-chair for the Iraq Study Group.
Alan K. Simpson was a member of the Iraq Study Group, is a co-chair for the National Commission on Fiscal Responsibility and Reform, and a director the Committee for a Responsible Federal Budget.





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