U.S. Debt May Hit 100% of GDP; Annual Interest Payments May Top $1 Trillion
CBO expects the annual cost of servicing the interest on the nation’s debt will reach $0.9 trillion in 2020 under the Obama budget plan, up from about $0.2 trillion this year. But it could very well go much higher than that, as a recent white paper from analysts at the International Monetary Fund (IMF) demonstrates. According to that projection, U.S. debt could top 100 percent of the GDP by 2020 if, as the IMF analysts expect, the large run-up in governmental debt pushes interest rates up faster than either CBO or the administration now forecasts.
Full post by James C. Capretta at National Review’s health care blog.
Ah, yes. the small problem of indebtedness. It seems to enlarge over time.
Looks scary.
Obama Care will add a lot here.
The borrower is slave to the lender. This applies to the Government too!
This is frightening.