Politico
CBO: Interest on debt snowballing
Accumulated interest payments from 2014 through 2018 are $1.76 trillion under CBO’s new baseline. Interest payments for the second five years are more than double that or about $3.64 trillion.
The growth takes place in a period when CBO is forecasting a steady ratcheting down on annual appropriations in hopes of reducing future deficits. On top of cuts enacted in 2011, the new baseline assumes that a new round of across-the-board cuts scheduled for March 1 will go into effect.
Blowback
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Mr. Micawber says ….
OldEnglish on February 6, 2013 at 4:23 PM
That’s what’s gonna do us in. The debt is bad enough, but if we reach the point where we’re forced to set aside a ton of the incoming tax revenue every year just to service that debt, we’ll be in hole we can never dig ourselves out of.
Doughboy on February 6, 2013 at 4:24 PM
Can the money printer stay one step ahead?
WashJeff on February 6, 2013 at 4:25 PM
It’s almost as if you can see it coming…
CycloneCDB on February 6, 2013 at 4:26 PM
“Interested in debt? Not really. Did you see Snooki’s new heels?”
–rank and file democrat
tom daschle concerned on February 6, 2013 at 4:26 PM
Since it is more imperative to pay for the welfare state, the welfare state is what will do us in. It is what prevents a balanced budget from ever happening.
astonerii on February 6, 2013 at 4:27 PM
No problem. I’m sure the Obama Campaign/SRM have a comprehensive plan to blame it on the enemy.
forest on February 6, 2013 at 4:27 PM
? (formerly known as sesquipedalian) thinks the CBO is all poppycock.
darwin on February 6, 2013 at 4:27 PM
The CBO is all poppycock.
tom daschle concerned on February 6, 2013 at 4:29 PM
Just wait until inflation pressures makes some at the Fed Bank nervous enough to no longer want to purchase $45 billion per month of US treasuries, forcing rates up. Oh it’s going to be soooooo much fun.
Weight of Glory on February 6, 2013 at 4:30 PM
At this point, what difference does it make?
Washington Nearsider on February 6, 2013 at 4:31 PM
Whoa there…the private sector is doing fine.
BobMbx on February 6, 2013 at 4:31 PM
Wait ’til the interest goes up (and it does not have to go up to Carter levels for big problems)
mwbri on February 6, 2013 at 4:31 PM
The CBO is all poppycock, now with link.
tom daschle concerned on February 6, 2013 at 4:31 PM
Look….the Republican War on Women
BobMbx on February 6, 2013 at 4:32 PM
Look….common sense gun control
BobMbx on February 6, 2013 at 4:33 PM
Look….conservatives want to control your lady parts
BobMbx on February 6, 2013 at 4:33 PM
Look…..at anything except the financial reality of the future.
BobMbx on February 6, 2013 at 4:33 PM
http://market-ticker.org/akcs-www?post=217182
sorry my phone does not copy/paste from multiple windows for some reason…
tom daschle concerned on February 6, 2013 at 4:34 PM
Cloward-Piven.
States need to start minting their own state currency.
The Rogue Tomato on February 6, 2013 at 4:34 PM
Sure we can. It’s called inflation. And then all the old people starve, but hey, no biggy, right? They have their guaranteed pensions, they’re all funded, right?
Fenris on February 6, 2013 at 4:37 PM
As soon as inflation hits, it’s over. The fat lady will sing.
ButterflyDragon on February 6, 2013 at 4:38 PM
Our Euro-style Utopia is close at hand!
Forward!
visions on February 6, 2013 at 4:39 PM
This is where the rubber meets the road:
In 10 years, the debt service will quadruple. Unknown to me here is whether or not future borrowing and associated interest (or the spectre of higher rates on US debt) is factored in.
If not, its game over in less than 10 years.
BobMbx on February 6, 2013 at 4:41 PM
Crowder or someone similar should go to a college campus and ask people what inflation is, what causes it, and if it’s good or bad.
I don’t believe many low-information voters even know what inflation actually is. Nor do they care.
visions on February 6, 2013 at 4:41 PM
http://dailycaller.com/2013/02/06/virginia-moves-close-to-creating-states-own-currency/
hollygolightly on February 6, 2013 at 4:41 PM
The key to everything that ails this country is education. Conservatives need to take back the education system from K-college. This is basic math, basic budgeting, basic common sense. Why can’t people learn this?
hopeful on February 6, 2013 at 4:41 PM
That’s the way to go, IMO. When the dollar collapses, which it will (that’s Obama’s goal), the state currency should still be worth roughly what it was before the collapse — at least within that state.
It would almost be like buying gold. The US dollar collapses, and then one Texas dollar would be worth a trillion US dollars.
At least that’s how it SHOULD work.
The Rogue Tomato on February 6, 2013 at 4:43 PM
Low-information voter: “Inflation? Dur, wasn’t that that movie with Leo about dreams or something?”
Doughboy on February 6, 2013 at 4:46 PM
One reason nobody knows about inflation is because it’s being calculated differently now than it used to be.
Back under Jimmah, inflation more closely reflected what we actually experienced, and since it was high, it was on the news constantly.
Now, we’re all paying a LOT more due to inflated prices of food and fuel (among other things), but the official inflation rate is low, so it’s not newsworthy.
That’s how clever politics works. Redefine away the problems.
The Rogue Tomato on February 6, 2013 at 4:49 PM
2009 – The CBO is objective and nonpartisan
2013 – The CBO is a bunch of GOP pawns…and they’re racist
CycloneCDB on February 6, 2013 at 4:50 PM
BTW, the same goes for the unemployment figures. They’ve redefined the way they’re calculated to “hide the incline”.
The Rogue Tomato on February 6, 2013 at 4:51 PM
There are a handful of educational methods that produce immediate and permanent results. Extreme hunger is one.
“Why are you hungry?”
“Because we voted for the guys who told us we could eat for free”
“Very good….you can have a biscuit”.
BobMbx on February 6, 2013 at 4:55 PM
Yep. Inflation used to be based on commodities and durable goods. Now its based on the intrinsic value of granite.
BobMbx on February 6, 2013 at 4:58 PM
$1.76T, $3.64T, $gazillion in interest.
“What difference does it make at this point?”
L.i.B.
gregbert on February 6, 2013 at 5:01 PM
Wow, I didn’t know that could happen.
We’ve got to Do Something!, fast. I suggest we spend even more so the interest on the debt is not such a large percentage of the deficit.
Dusty on February 6, 2013 at 5:09 PM
CBO report:
* Public debt by 2023 = $19.9 trillion
* Gross federal debt (public debt + $ owed to trust funds) to reach $26 trillion by 2023
* Absent changes, “debt will rise sharply relative to GDP after 2023.”
* SS, Medicare, Medicaid & Obamacare exchanges to cost $24.5 trillion from 2014-23, 52% of total fed spending.
* Unemployment to stay above 7% in 2014 for 6th straight year, “the longest period of such high unemployment in the past 70 years.”
* In 2022, “7 million fewer people will have employment-based health insurance as a result of the Affordable Care Act.”
* Accumulated interest payments from 2014 through 2018 are $1.76 trillion under CBO’s new baseline. Interest payments for the second five years are more than double that or about $3.64 trillion.
I’ve seen Obamaland and IT. DOES. NOT. WORK!
Resist We Much on February 6, 2013 at 5:19 PM
How long until someone coins a new phrase to describe the combination effect of inflated prices, smaller government handouts, health care death panels, and monetized government debt?
I suspect this will ultimatly be known as Obama-nomics and it will be derided by historians for decades!
Freddy on February 6, 2013 at 5:44 PM
MyBO report:
* Public debt by 2017 = $19.9 trillion
* Gross federal debt (public debt + $ owed to trust funds) to reach $26 trillion by 2017
* Absent changes, “debt will rise sharply relative to GDP before 2016.”
* SS, Medicare, Medicaid & Obamacare exchanges to cost a gazillion from 2013-17.
* Unemployment to stay above 7% through 2017, “the longest period of such high unemployment ever.”
* In 2017, “30 million fewer people will have employment-based health insurance as a result of the Affordable Care Act.”
* Accumulated interest payments from 2014 through 2018 are $1.76 gazillion under MyBO’s new baseline. Interest payments for the second five years are more than double that.
The Rogue Tomato on February 6, 2013 at 6:36 PM