US Government faces wave of debt payments

honest politicians are like a breaht of hot air

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

There is no hope for our nation and its economy. There will be no recovery. Not now, not next year, not anytime. You are the problem and you do not know and / or you will not admit it. You buy all products imported and you put your fellow Americans out of their jobs. There will never be more jobs or better jobs in the United States when you spend all your money on imported goods.

Thus, you caused this mess and you will cause this disorder to grow worse and worse and worse until the jobs totally leave because of your non-stop ongoing purchases of imported products. You have very effectively destroyed the United States by spending your income products imported. Do not worry about the communists, support for bin Laden to destroy the United States because you have permanently destroyed the United States and more efficiently.

It should be illegal or unconstitutional for the government to borrow money in prosperous or even in normal times. Individuals borrow and the reason is that they are mortal – we want to enjoy our big house until we can afford it, but a government is expected to continue indefinitely, so in that logic, any loan is nonsense. Although it may sound good to “leverage” money, the reality is that in good times, you should be saving for bad times, not extending your debt. Like people who have trouble with credit cards, government borrowing has not really ever you get ahead just further and further behind. Anyway, they should make illegal loans to public budgets that must be balanced and the debt must be repaid – and difficult conversations can happen without fear politicial to discuss these honestly.

It seems that the question should be not how much debt is held abroad, but whether this ultimately forces higher interest rates combined with expansion of the money supply.

It was the latter that seems to be the culprit in the drop in value of the dollar, but I’m wondering now if US financial system structural problems aren’t likely to continue to drive peril to the non-US financial systems.

We might make a reasonable assumption that both will occur — continued money supply expansion, coupled with a continued crumbling regulatory system. That would in term imply continued instability. So, how long will the dollar be a currency of flight to rather than flight from?

Wave of Debt Payments Facing U.S. Government
By EDMUND L. ANDREWS

WASHINGTON — The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.’s on terms that seem too good to be true.

But that happy situation, aided by ultralow interest rates, may not last much longer.

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.

You can read more information about this story from the New York Times

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