Interest On The National Debt

This always gives me a chuckle.

Back in 1988 the US debt was $2,602,337,712,041.16  (That's $2.6 trillion).

In 1988 it cost us $214,145,028,847.73   ($214 billion) in interest costs to carry that debt.

The yield on treasury bills/notes (US Savings Bonds) is what determines our interest rates.

In 1988 the average 10 year yield was 8.85%.   Today it is 2.62%.


As of September 30, 2010  (the end of fiscal year) our debt stood at $13,561,623,030,891.79  ($13.5 trillion buckaroos).
In 2010 it costs us $413,954,825,362.17 ($413 billion pieces of paper) to finance it.

Here comes the funny part..............
If we had to pay......... like lets say the US didn't have the Federal Reserve to buy $600 billion over the next 8 months to purchase all those little IOU's that the treasury will be issuing.......and we had to rely on other nations to buy our debt so we could pay for our military...... food stamps..... roads.....unemployed........mortgages......Wall Street bonuses..........on and on......those nations would demand higher interest on the junk they are buying.
If we had to pay, the same rate of 8.85% like we did back in 1988  then it would costs us around $1.3 trillion just to for the interest on the debt outstanding.
That's more than all the federal income taxes and corporate taxes we take in now.
And more than $2 trillion if we had to pay the same yields as we did back in 1981.
That, my friends, is close to all federal revenue........ in other words all taxes would go to paying for stuff we already used.

Should I mention how back in March of 2002 they stopped issuing 30 year treasuries till March of 2005 and how a vast majority of our debt was and still is sold in bills and short term notes? That means as we find it harder and harder to find NEW buyers for the debt we are creating, we will also need to find buyers to replace those maturing securities.
OK I won't.

What the fuck are we gonna do in 8 months when QE2 is done? Who is gonna buy our debt? And what will the costs be?
And the fucktards just came out with the plan to save $200 billion a year but it won't start till 2012.

UNREAL.

The democratic party, the republican party, the tea party, the peanut butter and jelly party not even Sarah Palin can save us from what is on the horizon.
Get your protest attire ready, within a few years we will need it. Watch Europe and study the breakup of the Soviet Union.

Guns, Gold and Garden......... and chickens.


This is not gonna be pretty.