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Interest on the National Debt in 2018 Was 325 Billion Dollars

nvflash said:
What would be the yearly interest payments on the national debt if rates went up as little as 2%?
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All new debt would be at 2% while interest on expiring 30 year and 10 year bonds would go away. The average yield on 1991 30 year Treasuries was 8.14%. The 10-yr 2011 bonds were 2.78%.
 
Exquisitor said:
Interest on the National Debt in 2018 Was 325 Billion Dollars
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No, it wasn't.

Comrade, we live in a federal republic. There is no such thing as a "national debt."

There is, however, a federal debt. Where you perhaps referring to that?
 
Mircea said:
No, it wasn't.

Comrade, we live in a federal republic. There is no such thing as a "national debt."

There is, however, a federal debt. Where you perhaps referring to that?
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Probably.

Either way,... Get paying it!
 
Exquisitor said:
Interest on the National Debt in 2018 Was 325 Billion Dollars:

A third of a Trillion dollars, by now half a Trillion Dollars a year on interest.

But I guess you can't blame them, when you're only paying 1.625%.

Revenue is only 3.5 Trillion dollars. round it up to four, and your payments may not exceed one Trillion dollars.

We can borrow maybe another five-Trillion dollars before we're maxed out and then instead of living off an extra Trillion on the credit card you have to do with forty percent less.

This is it, 2021 we can either pay the debt or go bankrupt.

Repeal the Revenue Cut ASAP.

interest on national debt - Google Search

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us revenue 2019 - Google Search

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So? Interest accounts for less than 2% of GDP.

I've been hearing for decades warnings about runaway inflation and currency debasement and nobody will buy our bonds. Never happened.
 
"80% of the $ 1 billion of Sudan's debt to Britain is accumulated interest on loans"

That' how they live,,, "The golden billion"... Robbing interest even after decades. The debt stranglehold, coupled with the establishment of a bourgeois version of democracy in the neocolony, completes the creation of neocolonialism.
What will not be siphoned off by the interest on the loan, the corrupt, thieving aboriginal elite will bring to the metropolis in the beak, using the "freedom of capital movement".
Why bother with colonial administrations, governors, the need to hold colonies by direct military force? Selected, with the help of the infinitely superior local resources of the metropolitan support, aboriginal thieves subscribe to the neoliberal postulates of robbery.
 
Exquisitor said:
Probably.

Either way,... Get paying it!
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We are paying it. We've been paying on it.

Your government spends way more than it collects in tax revenues. Changing the tax rates will neither alter that fact nor will it reduce deficit spending.

The government collects about $3 TRILLION in revenues but typically spends $4+ TRILLION.

If you raised the tax rates and collected $4 TRILLION in revenues, then the government would spend $5+ TRILLION.

The monthly budget deficit is packaged each month and sold as Treasury securities, usually T-Bills.

Quarterly, semi-annually or annually whatever T-Bills weren't purchased or rolled over and whatever Treasury bonds and notes weren't rolled over are repackaged as Treasury bonds and notes.

A variety of domestic entities (States, counties, cities, unions, hedge funds, insurance companies, banks, businesses and households) and foreign entities (governments, central banks, private banks, insurance companies, political subdivisions, insurance companies, businesses and households) purchase those T-Bills, bonds or notes.

So long as they continue to do so, there's no problem.

If those entities reduce or halt their purchases of your debt packaged as Treasury bills, bonds and notes, then you have a problem because that money ends up in your economy and generates Monetary Inflation, which is not the same thing as Wage Inflation, Demand-pull Inflation, Cost-push Inflation or Interest Inflation.

Left unchecked, that can morph into hyper-Monetary Inflation.

The forms of Inflation are not mutually exclusive or disjoint.

You can have Monetary Inflation driving up the price of everything -- and "everything" includes wages -- and Wage Inflation driving up the price of most everything -- including wages -- and Demand-pull Inflation driving up prices of select goods or services (but not wages) and Cost-push Inflation driving up the price of select goods and services (and possibly wages but not usually).

So you can have Monetary Inflation at a rate of 10% annually, with Demand-pull Inflation at 6% annually and Cost-push Inflation at 1% annually and the government reports that on the CPI as an annual Inflation rate of 17%.
 
Mircea said:
We are paying it. We've been paying on it.

Your government spends way more than it collects in tax revenues. Changing the tax rates will neither alter that fact nor will it reduce deficit spending.

The government collects about $3 TRILLION in revenues but typically spends $4+ TRILLION.

If you raised the tax rates and collected $4 TRILLION in revenues, then the government would spend $5+ TRILLION.

The monthly budget deficit is packaged each month and sold as Treasury securities, usually T-Bills.

Quarterly, semi-annually or annually whatever T-Bills weren't purchased or rolled over and whatever Treasury bonds and notes weren't rolled over are repackaged as Treasury bonds and notes.

A variety of domestic entities (States, counties, cities, unions, hedge funds, insurance companies, banks, businesses and households) and foreign entities (governments, central banks, private banks, insurance companies, political subdivisions, insurance companies, businesses and households) purchase those T-Bills, bonds or notes.

So long as they continue to do so, there's no problem.

If those entities reduce or halt their purchases of your debt packaged as Treasury bills, bonds and notes, then you have a problem because that money ends up in your economy and generates Monetary Inflation, which is not the same thing as Wage Inflation, Demand-pull Inflation, Cost-push Inflation or Interest Inflation.

Left unchecked, that can morph into hyper-Monetary Inflation.

The forms of Inflation are not mutually exclusive or disjoint.

You can have Monetary Inflation driving up the price of everything -- and "everything" includes wages -- and Wage Inflation driving up the price of most everything -- including wages -- and Demand-pull Inflation driving up prices of select goods or services (but not wages) and Cost-push Inflation driving up the price of select goods and services (and possibly wages but not usually).

So you can have Monetary Inflation at a rate of 10% annually, with Demand-pull Inflation at 6% annually and Cost-push Inflation at 1% annually and the government reports that on the CPI as an annual Inflation rate of 17%.
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No, it's coming.

That's why I say raise revenue a Trillion dollars and don't increase spending.
 
With growing debt and rising interest rates, net spending for interest more than triples relative to the size of the economy over the last two decades of the projection period, accounting for most of the growth in total deficits.
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1617120193446.png

It doesnt look good according to the CBO. Everyone is going to need to produce extra hard to make sure govt gets enough. Effectively 10c of every dollar you create will go interest.

The 2021 Long-Term Budget Outlook | Congressional Budget Office (cbo.gov)
 
Exquisitor said:
That's abysmal.

What do they expect to do then?

Sometime before 2006 that deficit line has to go green enough to pay interest and principle.
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I dont know. I dont think politicians think beyond the next election or maybe the current news. I suppose it will take some crisis like housing bust or pandemic to force change, but those made it worse, not better. So itll take something that kicks everyone out of office.
 
jonny5 said:
I dont know. I dont think politicians think beyond the next election or maybe the current news. I suppose it will take some crisis like housing bust or pandemic to force change, but those made it worse, not better. So itll take something that kicks everyone out of office.
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If we can stick to our Majorities and control the Democrats will again prove the steady earners and reduced deficit, and if I get my way; to a balanced budget.
 
Exquisitor said:
If we can stick to our Majorities and control the Democrats will again prove the steady earners and reduced deficit, and if I get my way; to a balanced budget.
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Wont happen. GOP may spend less, but they still are unwilling to deal with entitlements. Because the people are dependent on govt. Nothing will change till culture changes.
 
jonny5 said:
Wont happen. GOP may spend less, but they still are unwilling to deal with entitlements. Because the people are dependent on govt. Nothing will change till culture changes.
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We have one chance to not go with the Republicans.
 
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