Quite simply, we are going to pay 4.8 trillion over the next 10 years in interest debt alone. That's at current interest rates. Very rosy. The problem with that rosy picture, is that interest rates are at rock bottom and the cost of that debt must inevitably rise. The U.S. treasury must continually refinance it's debt. In fact, next year alone we will have to refinance 40% of our national debt as debt securities mature and we must pay bondholders. Let's pray we get current rates.
In a nationwide poll, this was the question that was asked asked. I giggled at the results. And at the question itself.
1. How much would you contribute to pay down the nation's debt?
|Less than $100||8%|
|More than $100||12%|
|My estate, when I die||1%|
|You've got to be kidding||79%|
The part I giggled about-is the ineptness and apparent lack of math skills inherent in the question.
And I am a math idiot.
Quite simply, if we have 150 million wage earners in the U.S., and each one of them gave 100 bucks, it would only amount to 15 billion or about 3.0% of just ONE YEARS interest. In fact to pay the interest on this debt each year will require an additional 3500 dollars per taxpayer. We still have to pay taxes for current expenditures like SS, Obamacare, Cap and Trade, and a few more wars. Or a little extra to actually pay down the principal. Now you begin to see how bad it really is. At existing rates.
Here's a quick fact check for you. http://www.usdebtclock.org/
And oh by the way, contributions will not be voluntary.