Not sure how accurate this figure is but it highlights the problem of servicing the debt.
The Outstanding Public Debt as of 17 Mar 2009 at 09:56:27 AM GMT is: $10,996,741,662,061.05
Outstanding current US debt is the above, assuming this clock is correct.
Now at 5% IR that means to service the debt the US needs:
$549,837,083,103.05 per year
Even being charged 1% the US needs to generate $109,967,416,620.61
Just think how many schools, medicare etc.... that money would pay for.
Even with rates at 0.25% the US needs $27,491,854,155.15 just to service it's debt.
This of course assumes that it's paying the same rate on all of it's debt.
To further complicate the matter if the debt grows at a "reasonable" 2% per year that adds only a mere $219,934,833,241.22 to the future.
If your brave keep doing that for 10 years and I bet the compounding effect adds about 20% onto the debt figure.
Sustainable in the long term? I think not.
Our economic exponential system is close to collapse the figures have gone beyond astronomical, remember this is one country.
IR's are inflationary to service this sort of debt requires inflation, without it the system implodes.
Again you won't ever see anyone talking about this in the media.
This post has been edited by interestrateripoff: 17 March 2009 - 08:03 PM