Posted on Tuesday, January 5, 2010
The US has to refinance about $1.6 trillion of maturing debt this coming year. The country wil spend about $400 billion in interest to service our national debt which has about doubled in the last 2 years. This may exceed $700 billion by 2019. $4500 billion annual debt service is more than the entire budget for education, energy, homeland security and our now famous Middle East wars. Foreigners own 44% of our short terms debt, about $880 billion. If they become uncomfortable and begin to sell, the dollars’ value will almost certainly decline further. Where would we all be if our grandparents had done this?