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Comment Re:3500 degrees (Score 1) 123

To answer my own question, the reason is that the amount of energy that can be captured is based on the temperature differences. So, if you could increase the temperature difference you could make energy.

As for the demon, just like Maxwell's, it would decrease entropy and, in doing so, increase the amount of energy available.

Comment Re:3500 degrees (Score 1) 123

This is just another in an example of XKCD falling down on explaining to me. I don't get the thermodynamics argument at all. My model is that I can take photons and put them where I want to by having a demon move around a mirror and shot them all at one spot (kind of like Maxwell's demon, but this one has a mirror). Yes, this creates a super hot spot, but it didn't use any energy that didn't already exist. It just put it all in one place.

Comment Re: I know it's trendy (Score 1) 649

I have no idea what you are saying or why people uprooted you. Nobody, "bought in" at 0% interest. The Fed offers that interest rate to banks. So a bank can go to the Fed and say, "I want money" and the Fed gave them a loan for a very low (just above 0%) interest rate.

Currently a 30 year bond has an interest rate of about 3%. This is an incredibly good deal for the US. Inflation over that time is likely to be a few percent, so this is like a 1% real interest rate. But, lots of the debt is not in 30 year bonds. Lots of it is in short term bonds and will have to be renewed. because of that, the interest rate on the debt will go up. It could go way up. e.g. it could double. This would make current expenditures (made at a 3% interest rate) look stupid when we are paying 6% of the money in a few years.

If this makes you think the Fed should lengthen our bond obligations, I agree. It's like free money now. But it won't last.

Comment Re: I know it's trendy (Score 1) 649

A 30 year treasury currently plays 3%, a bit above the likely 30 year inflation rate. But if the Fed keeps raising interest rates the 30 year interest rate could easily double. That would make interest on the debt go from $200 billion / year to $400 billion per year. And, $200 billion per year is a huge amount of money. It is a large chunk of the economy.

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