The Deficit President

Recently, the American government had to offer higher than expected interest rates to sell bonds. How will this impact the future deficits?

These projections had to consider interest payments on all of the debt Obama planned to buy while running these deficits, and any hike in interest rates means that those interest payments will have to go up. That also means that we will have to spend more money than Obama projected, creating even higher deficits and the need for even more bond sales — and more interest payments on those.

It’s basically a Ponzi scheme, and it’s accelerating.

Yup.

Comments

[Snake Oil Baron]

I am beginning to worry about what the world will do without America. Hopefully a real American (capitalist and pro liberty and democracy) will run as president and the Republicans will not only retake Congress but renew their party in 2012 and be able to prevent a world where the EU and the UN are the fulcrums of the world.