Note: The Top Derivative Holders Chart on Left. The Debt pales in comparison to the major derivative problems about to unwind.
Unless lawmakers make big changes, the interest Americans will have to pay to keep the country running over the next decade will reach unheard of levels.
NEW YORK (CNNMoney.com) -- Here's a new way to think about the U.S. government's epic borrowing: More than half of the $9 trillion in debt that Uncle Sam is expected to build up over the next decade will be interest.
More than half. In fact, $4.8 trillion.
If that's hard to grasp, here's another way to look at why that's a problem.
In 2015 alone, the estimated interest due - $533 billion - is equal to a third of the federal income taxes expected to be paid that year, said Charles Konigsberg, chief budget counsel of the Concord Coalition, a deficit watchdog group.
On the bright side - such as it is - the record levels of debt issued lately have paid for stimulus and other rescue programs that prevented the economy from falling off a cliff. And the money was borrowed at very low rates.
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EA - thanks for all these great eye-opening articles!
ReplyDeleteThese numbers are numbing the entire banking system with the exception of a few banks.is totally *****d.This is the biggest paper job in the history of mankind.im no expert how can things not get worse as time moves on.The situation is truley scary.
ReplyDeletebuy silver and gold now before the herd tries to get in it will be too late to adequately protect yourself.
Correct - once the school of lemmings finally figure out they are holding worthless toilet paper look out.
ReplyDeletePrices will increase exponentially. Doubling in hours, not years.