America Faces Tsunami of Debts

2010 is looking rough for the federal government. There is massive debt are coming due in the months ahead. The prospect of  raising  higher interest rates, and short-term balloon debt are due is  in store  for the US Treasury.

The Treasury is looking to exchange short-term   debt to long-term low-interest rate bonds. In other words, the federal government will face “sticker shock.”

The White House acknowledge that By 2019 the debt service on $12 Trillion is an astonishing $700  billion a year. That’s  up from $202 billion this year.  Government forecasters project annual deficits shrink. Other economist think otherwise.

About $500  billion in interest would total  will exceed the federal department budgeting including Education, energy,  homeland security and the defense  departments for  the wars of  Afghanistan and Iraq combined.

The high levels of debt justified due in large part of US economy. With the  global  credit crisis and this recession,The Bush and Obama Administration did what they did due to  circumstances. But now Washington is divided on how to reducing the deficit quickly and safely. And Postpone the debt payoff is impossible.

New York Times has more.

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One response to “America Faces Tsunami of Debts

  1. There is a NYT article on the US debt today (see http://euandus3.wordpress.com/2009/11/23/12-trillion-in-debt-living-beyond-our-means/). It hasn’t been just after the financial crisis of 2008 that the US Government has had unbalanced annual budgets… And consider consumer “use” of credit cards? Is there something about our society–about ourselves–that we are missing because we are in it? (e.g. a fish doesn’t “see” its water). I don’t think we are digging deep enough.

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