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The real long-term budget challenge, according to Bruce Bartlett: interest on the debt. Interest...

The real long-term budget challenge, according to Bruce Bartlett: interest on the debt. Interest rises from 6.1% of the federal budget in 2012 to 12.9% in 2020, 21% in 2030 and 59% if current projections are maintained through 2082. Federal entitlement programs pale in significance, he says, and "the idea that we are facing a crisis is complete nonsense" - it's all about the interest.
Comments (4)
  • wyostocks
    , contributor
    Comments (7647) | Send Message
     
    At least someone "gets it".
    12 Dec 2012, 11:09 AM Reply Like
  • Guardian3981
    , contributor
    Comments (1931) | Send Message
     
    I wonder at what interest rates his projections are, imagine if rates were to rise to even the mid single digits, the servicing cost of the debt would quickly baloon.
    12 Dec 2012, 11:13 AM Reply Like
  • Seth Walters
    , contributor
    Comments (675) | Send Message
     
    If the Fed buys all the debt, it won't matter what the interest is - it will all be circular. The consequences would be large, though.
    12 Dec 2012, 11:14 AM Reply Like
  • wyostocks
    , contributor
    Comments (7647) | Send Message
     
    Seth
    At what point does the fed bs become "Too Big"?
    12 Dec 2012, 11:38 AM Reply Like
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