$222 Billion this year for Interest $570 Billion by 2022

[diehardgator1]

$222 Billion dollars just to pay the interest this year and $570 Billion by 2022 and that is at the current low interest rates Just think if interest gos up hold on the ride will get bumpy. Yet the Dem want to do nothing about it. The small amount raised by the tax the rich scheme will do nothing.


"Even at these rates, that interest will cost the U.S. more and more every year -- $222 billion in interest payments on the debt this year, and $570 billion by 2022, just at current rates.

Imagine what could happen if rates rise.

Economist John Taylor said that if the interest rate were to rise, say, from 2 to 4 percent, "it really doubles the amount that you have to pay on a given amount of debt and when the debt's so high, that's a lot of money."

Economist Robert Genetski said the spiral from an increase in interest rates would be "very difficult to contain."

Read more: http://www.foxnews.com/politics/2012/12/20/cost-spending-federal-reserve-intervention-could-have-dangerous-consequences/#ixzz2FhTp0ltI

[orangeblueorangeblue]

Actually if you factor in all maturities on debt owed it's about $800B now.

[G8trGr8t]

ridiculous amount of money being wasted paying interest on money that was not properly invested to produce a return. Nothing wron with borrowing if you are spending it on something that is going to produce a return greater than the cost of the interest but we continue to spend money on things that have no long term value.

Intergenerational theft is being propogated on us and our children. It should be criminal to steal from future generations like we are.

[brainstorm]

Let me dig up those GDP figures somewhere so I can get you guys to calm down.

[corpgator]

Let me guess, none of you have ever borrowed money to pay for anything?

[LittleBlueLW]

corp, you ever heard the term 'in over your head'?

[DeanMeadGator]

Let me guess, none of you have ever borrowed money to pay for anything?

Yes, and I was required to repay [with interest] what I borrowed. The day is coming when the United States [to wit, us, our children, grandchildren and great grandchildren] will have to pay what has been borrowed [soon to be $20 trillion] with interest.

[mocgator]

Inflation. Get ready.

It is the only way out.

Have an exit strategy.

[gatordowneast]

corp, you ever heard the term 'in over your head'?

Bet he has not heard of the term "under water" either. Or foreclosure. Or short sale. Or ratings downgrade. Or default.

The only people not concerned about massive debt or those too stupid to know the consequences or those not planning on paying in back.

[vangator1]

That's why the govt will only talk about deficit reduction and never do a thing about it. We don't "b orrow" anything. It's just a number at the Fed. They do extract interest however. The Fed is not a part of our govt.

[gator996]

Inflation. Get ready.

It is the only way out.

Have an exit strategy.


You mean we're going to just hold on to all of those bonds we purchased in the QE operations?

The exit strategy is sell the bonds back and take the printed money out of the system.

:yes:

[gregthegator]

You mean we're going to just hold on to all of those bonds we purchased in the QE operations?

The exit strategy is sell the bonds back and take the printed money out of the system.

:yes:

Yeah mean like greece or GM for that matter...like 50 cents on the dollar or less...great plan...for the 1% of the 1%...not so much for the REST of us.

[gator996]

Yeah mean like greece or GM for that matter...like 50 cents on the dollar or less...great plan...for the 1% of the 1%...not so much for the REST of us.


No, those were negotiations between private investors and issuers.
Has absolutely nothing to do with QE operations.

But throwing around words like Greece & GM always helps :rolleyes:

Here's a tip...throw in an "Obama" and a "liberal" here and there and you can get the support of bil, downeast, & dreamliner...

[gregthegator]

No, those were negotiations between private investors and issuers.
Has absolutely nothing to do with QE operations.

But throwing around words like Greece & GM always helps :rolleyes:

Here's a tip...throw in an "Obama" and a "liberal" here and there and you can get the support of bil, downeast, & dreamliner...

Really...got news for ya....the FED is PRIVATE...

And we CAN NEVER pay the debt...like Japan/Greece...except w/inflation...destruction of the dollar...

[G8trGr8t]

You mean we're going to just hold on to all of those bonds we purchased in the QE operations?

The exit strategy is sell the bonds back and take the printed money out of the system.

:yes:

What rate will it take to make those bonds attractive? Who pays the difference?

[gator996]

What rate will it take to make those bonds attractive? Who pays the difference?

Newsflash...mortgage market improving...marketability of mortgage bonds improving (Basel III LCR)...the bonds are already in existence their "attractiveness" isn't in the stated coupon rate but where they trade in the secondary market vis-a-vis the stabilization of default rates.

Your assumption is that the govt will be taking a loss...

And when you consider total return & value tell me how you'll value saving the financial system against any negative price difference.

[corpgator]

Bet he has not heard of the term "under water" either. Or foreclosure. Or short sale. Or ratings downgrade. Or default.

The only people not concerned about massive debt or those too stupid to know the consequences or those not planning on paying in back.

I bought a house that was a short sale. Of course I know what all of that means. My home loan cost me 3 times what I make in a year, did I make a bad deal? No, because my monthly mortgage is half of what I would be paying if I were renting and I'm building equity.

We live in an economy of money management. You all profess capitalism, but don't want the government to take advantage of it. It's the time we live in, so get used to the government borrowing money at very low rates.

Else, we can stop fighting everyone's wars, building useless weapons systems, caring for the elderly, maintaining our infrastructure, etc, etc, etc. It's where we are right now and your side contributed just as greatly as the other. We can get out of it gradually, or we can suffer a full collapse like a lot of you seem to want and never recover.

[Gatoragman]

Corp, you did the right thing by only borrowing what you could pay back. Your phiolosphy for the government though is you should have bought on the beach, 100 times more than what you make, don't worry about paying it back then expect a hurricane to wash it away and have the government come back in and and rebuild it for you.
Nice!!!!!

[mocgator]

The following numbers should tell you what kind of disaster the US is heading towards, due largely to Reid and Obama's fiscal dishonesty.

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385

[orangeblueorangeblue]

Really...got news for ya....the FED is PRIVATE...

Not exactly.

And we CAN NEVER pay the debt...like Japan/Greece...except w/inflation...destruction of the dollar...

Actually, we've been doing this for decades. The value of the dollar survives based on the perceived long-term future output of the United States.

Inflation is a temporary lock in a system that has historically always reached equilibrium. We have proven monetary policies in place to mitigate them.

[corpgator]

The following numbers should tell you what kind of disaster the US is heading towards, due largely to Reid and Obama's fiscal dishonesty.

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385

The government is a part of the people. US GDP is 16 trillion+ That's what you should be considering as income.

[gator996]

The following numbers should tell you what kind of disaster the US is heading towards, due largely to Reid and Obama's fiscal dishonesty.

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385


The reason why this example is bogus is what obob is trying to tell you.

The U.S.A. isn't like a household...the earning potential of the U.S.A. can go MUCH MUCH HIGHER, and much more quickly than the $21,700 homeowner can change the earning potential of an average homeowner...that's national income is when things are horrible.

And if you really buy that example...wouldn't you admit the income has to go up right now to slow this thing down?

Even if you could cut the spending to zero, which you can't...
...you still have the outstanding to settle.


If this example is correct...You should be in favor raising taxes to paydown the outstanding while stopping all spending.

Do you believe in society at all? :grin: