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    • NY Times: Annual Interest on Debt Will Soon Be More than the Entire Iraq War

    John on November 23, 2009 at 12:45 am

    A decade from now, we will spend more on debt service in one year than the total cost of the Iraq War thus far. From the NY Times:

    With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

    In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.

    Funny, Democrats haven’t seemed that worried about debt service until this month. I wonder why the sudden urgency?

    The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years. On top of that, the Treasury has to refinance, or roll over, a huge amount of short-term debt that was issued during the financial crisis. Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.

    Clearly what’s needed is another stimulus.

    This month, the Treasury Department’s private-sector advisory committee on debt management warned of the risks ahead.

    “Inflation, higher interest rate and rollover risk should be the primary concerns,” declared the Treasury Borrowing Advisory Committee, a group of market experts that provide guidance to the government, on Nov. 4.

    “Clever debt management strategy,” the group said, “can’t completely substitute for prudent fiscal policy.”

    Mr. President, put down the socialist mop. You’re only making the mess worse.


    Category: Energy & Economy |

    6 Comments

    1. Bobachek

      We have nobody to blame but ourselves. We keep electing people on both sides of the aisle that seem to have the belief that the well has no bottom and will never go dry.
      To this day it astounds me how casually those in DC talk about billions of dollars here, billions of dollars there. There seems to be a numbness as to how much money they are actually talking about when they spend all of this money that we don’t have.

      The only way this ship is going to be righted now is thru severe budget cuts and massive increases in taxes/fees and it won’t just be those making more than 250 grand a year paying these extra taxes as Obambi claims. There simply aren’t enough people in that wage bracket to pay for this governments spending/entitlement programs even you took every nickel they have ever earned.

      Fasten your safety belt boys and girls, we are in for a very bumpy ride.

      November 23, 2009 @ 5:52 am
    2. Hot Air » Blog Archive » Gibbs on gigantic national debt: Hey, don’t forget the savings ObamaCare

      [...] enough perspective for you? Verum Serum notes that $700 billion is about the cost of the Iraq war so far. Gibbs’s take on the [...]

      November 23, 2009 @ 5:45 pm
    3. Evan

      Ah!!! I found what I was looking for. Somtimes it takes so much effort to find even tiny useful piece of information. http://bit.ly/2Lsw39

      November 24, 2009 @ 4:57 am
    4. PRCalDude

      Note that the 200 billion of debt service obligation is already 1.5% of our GDP, which stands at roughly 13 trillion. So at least the first 1.5% of our GDP growth every year just goes to service debt.

      At 700 billion, it jumps up to 5.4% of our GDP, so we’d need annual GDP growth of that percentage just to keep up on our payments. When was the last time we had that (and don’t mention the GDP growth of the Bush years because it was all built on funny money)?

      We’d better start growing our economy – and much faster than our debt.

      November 24, 2009 @ 4:15 pm
    5. Jim

      Obamanure is a lawyer, not an economist. His spending spree makes Bush look like a frugal stamp collector. Throw in the socialized medicine bill and our debt will reach an uncontrollable level. Something very bad is going to come from all of this. A crash is coming and no amount of teleprompter windbaggery by our unctious half-wit will save our republic.

      November 24, 2009 @ 7:32 pm
    6. M.G.

      Re:4

      The U.S. government’s budget stands at about 2.5 trillion dollars. It frankly makes no sense to argue that the U.S.’s Gross Domestic Product needs to grow at all in order for the United States to continue servicing debt obligations of 200 billion (or 500 billion) a year.

      While growth in the GDP results in greater tax receipts for the U.S. budget, the GDP is not itself the same thing as the U.S. budget, and they should not be confused.

      December 1, 2009 @ 10:14 am

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