Wednesday, August 29, 2012

US Debt Bomb

With a recent government bond sale, from Zero Hedge,  the US National debt reached $16,000,000,000,000.   It took 200 years to reach the first $1 Trillion in debt.   Now it took only 286 days to go from $15 T to $16 T.

But wait. You aint's seen nothing yet. At this rate of growth, total US debt will surpass:
  • $17 trillion on June 10, 2013;
  • $18 trillion on March 23, 2014;
  • $19 trillion on January 3, 2015; and
  • $20 trillion on October 16, 2015
The US Interest payments on debt amounts to $323 Billion in 2012.   That represents an average of 2% interest rate.   If interest rates return to normal levels of 4%, the interest payments would eventually double to $646 Billion.   That bill in 2015 will be $800 billion, or greater than our already bloated defense budget today.

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