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Debt Interest To Quadruple In 10 Years

From, of all places, the Washington Post:

Obama budget plan shows interest payments on national debt quadrupling in next decade

By Steven Mufson
Thursday, February 17, 2011; A01

Interest payments on the national debt will quadruple in the next decade and every man, woman and child in the United States will be paying more than $2,500 a year to cover for the nation’s past profligacy, according to figures in President Obama’s new budget plan.

Starting in 2014, net interest payments will surpass the amount spent on education, transportation, energy and all other discretionary programs outside defense. In 2018, they will outstrip Medicare spending. Only the amounts spent on defense and Social Security would remain bigger under the president’s plan.

The soaring bill for interest payments is one of the biggest obstacles to balancing the federal budget, pushing the White House and Congress to come up with cuts deeper than previously imagined. Unlike with discretionary spending or even entitlement programs, the line item for interest payments cannot be altered except through other budget cuts.

You mean can’t Congress can’t just ‘deem’ interest payments to be lower?

The phenomenon is a bit like running up the down escalator. Without interest payments, the president’s plan would balance the budget by 2017. But net interest payments that year are expected to reach $627 billion, up from $207 billion in the current fiscal year

In fact, we would say that the phenomenon is more like running down the down escalator. It’s a raise to the bottom, for our economy.

Even with the cuts in Obama’s budget, relief would not come until 2021, when the deficit as a percentage of gross domestic product would stop rising and plateau at 3.4 percent.

The explosion of interest payments comes from a double whammy of economic factors. First, the nation’s debt is growing faster than the economy. Second, interest rates are rising. Over the next decade, net interest payments will amount to nearly 80 percent of the debt added, an indication of how past borrowing is forcing the country deeper into debt…

But bear in mind, whenever you hear Mr. Obama talking about how his budget cuts the deficit, that he is leaving out the interest on the debt.

This article was posted by Steve on Thursday, February 17th, 2011. Comments are currently closed.

5 Responses to “Debt Interest To Quadruple In 10 Years”

  1. proreason says:

    “But bear in mind, whenever you hear Mr. Obama talking about how his budget cuts the deficit, that he is leaving out the interest on the debt.”

    We’re starting to regularly hear now a theme I’ve been harping on for the last few months.

    While the country descends into the abyss, while the world becomes more chaotic and more dangerous, while economies around the globe struggle, while Americans deal with higher costs, lower prospects, poorer education, higher threats…every word that comes out of Obamy’s mouth is a political con game.

    Even if you believe in his “vision” of big marxism and the elimination of personal freedoms, you have to wonder why he never NEVER talks straight. If all of this is so good for us, why doesn’t he just lay it all out for us and let the truth overwhelm his opponents?

    rhetorical question

    • Rusty Shackleford says:

      While the socialist punditzes like to refer to barry as “Reaganesque”, I submit that right now, he’s closer to FDR. Roosevelt, through very poor foreign relations and destructive domestic policies, probably made it inevitable that we would be sucked into WWII.

      This time, a similarly minded tenderfoot, novice, pathetic, inept statesman has resulted in similar circumstances. He has pissed everyone off, treated our closest allies like crap and the resultant unrest worldwide could erupt in a conflagration of epic proportions. But, to be fair, all barry knows how to do is piss people off; Get under their skin and make ’em mad. Seems he’s done a top notch job of doing that to both this nation and the world.

      Then, with the announcement by the FBI of a 100% likelihood of a WMD attack on the US by radical freakshows, I don’t think it’ll take much. Another parallel is easily seen in the record unemployment numbers that the big zero shares with FDR.

      So you’ve got:

      Record domestic unemployment
      civil unrest in the nation for a great many reasons…all directly traceable to the office of the president
      hyperinflation about to hit
      a gutted military, done so over years of democrat-devised utopian schemes
      piss-poor status on the world stage with few allies expecting anything from the U.S.
      Massive unhappiness worldwide, in part due to the hyperinflation of food costs

      In short, it’s 1939, the sequel. Yogi Berra, I hear you. “It’s deja-vu all over again”

    • proreason says:

      I don’t equate him to FDR at all, or any other politicians, including LBJ, Carter, or Bubba.

      FDR pushed socialism, but at a time when the horrors of socialism were not understood. Lenin had only been around for about a decade, and it would have been easy enough to persuade oneself that his atrocities were necessary in a country as bacward as Russia. We have the benefit of hindsight 80 years later.

      LBJ did his nutty stuff after Europe went massively socialist in the 50’s. At that point, those “experiments” didn’t look all that bad, and there was certainly a huge trend throughout the world in that direction. Yes, Lenin’s, Stalin’s, and Mao’s atrocities were known, but I can understand how people could say “that’s not us. We will do it better.”

      Carter was an zealot who operated independently. He was an incompetant rogue fool with no organizational backing.

      Bubba was a power-hungry amoral politician in the tradition of American populists. He would have been a John Bircher if that had been a more viable path to power and blow-jobs.

      Obama is many orders of magnitude removed from all of them. The primary reason is that the world now knows that socialism has ALWAYS failed, including now the failures of European socialism before our very eyes, all of the failed socialist states in the Middle East. In addition, we have the examples of China and India that have moved away from total command and control and have implemented market-based economies with great success. The Moron can’t possibly be a starry-dyed dreamer who happened to fall in love with a government style that has wonderful promise. No way.

      This guy is as evil as they come.

      He is the most dangerous person to appear on earth since Stalin died.

    • TerryAnne says:

      PN – same reason Lenin, Marx, Stalin, Mao, Hussein, et al, never talked straight, either. For a politician to actually clearly state that he’s going to completely dissolve your will to live is suicide. He – like every demagogue and/or dictator-like leader – knows that to waffle and babble is to buy time to get his work done; if he doesn’t, his true patriots will complain about how long it’s taking, and the majority (those who aren’t socialist/marxist/communist/nazi) will be out to kill him. I look at it as reverse selfishness (the true definition of selfishness being good and popularized by Ayn Rand). He can’t go and say, “this is just for me, because I have no self-esteem or self-worth, having been a champion of the government handout and affirmative action program, and, thus, I need the power 24/7”, because he is the champion of the government handout and affirmative action program…and he knows we have a very good bead on his arse and if he was to ever actually say it, he’d never be able to get a nomination to even Homecoming Court.

      There’s a lot more I could say on this but I know I’ll end up rivaling John Galt. The plain fact is that Obama has and will only care about himself; not his daughters (notice that there are only two – fits that nuclear family image); certainly not that thing he calls a wife (she was avaiable and desperate…kind of a trend among Liberal wives); and, most certainly, the average American. He gave his own Press guy – Gibby – his own tie back!! And then spent his “birthday wishes” speech comparing himself to “the Gipper”! Once you apply that to everything he does – it all makes sense. This makes him easily defeatable…but it requires mucking through the defense system the liberals have built to shield “everyone” (read: their pawns, including the upcoming generations which are largely liberal due to education, the Hollywood pervasivness…). Once we can get through – we’re golden.

  2. RAZ says:

    I think I know how the new budget director…Mr. Lew…got his job.

    The Obama Administration is interested in hiring a replacement for Orszag (the prior budget director, who decides to leave because he sees that our nation is heading for a fiscal train wreck and he doesn’t want to be anywhere near it when it happens).

    Candidate # 1 appears for his interview with Obama. Obama: “Tell me, what is the sum of 1 + 1?” Candidate # 1: “The answer is 2.” Obama: “Thanks.” Candidate #1 leaves.

    Candidate # 2 enters the Oval Office. Obama: “Tell me, what is the sum of 1 + 1?” Candidate # 2: “The answer is 2.” Obama: “Thanks.” Candidate # 2 leaves.

    Mr. Lew is next to be interviewed. “Tell me, what is the sum of 1 + 1?” Mr. Lew: “Whatever you want it to be.” Obama: “You’re hired.”

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