Real Wealth Society

Wednesday, February 01, 2006

Banking Interest Composed 62% Of Our On-Budget-Deficit Last Year By BabylonToday

RE: A Short Story About Billions and Trillions By SB Kayser

The nauseating part is the skyrocketing interest in spite of interest rates steadily dropping since 1980. Now we have had 14 interest rate hikes and our average debt maturity is just 55 months. This will be a huge topic this year, interest having composed 62% of our on-budget last year at 352 billion! Treasury will probably post a January figure for update in a few days. If I had to bet I would bet that by the end of the first third of the fiscal year (Jan 31) we will have eclipsed half of the interest paid for the whole last year. And now we are beginning spending on prescription drug so-called benefit.