Hi KG, I think you need a bigger calculatoryou are out by a...

Hi KG,

I think you need a bigger calculator

you are out by a factor of 10

interest bill .4 trillion but maybe higher already at 160bil after 4months

here

http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

revenue from your figures say 4.5trillion

4.5/.4 = 11.2

that changes the picture somewhat


why is the interest rates on the debt so low

In just the last two years the interest rates payable
on all US Govt marketable interest bearing debts has
fallen from 4.573% in jan 08 to 2.559% in dec 09.

That is over a full 2% or nearly half of what it was 23months earlier, this fall, when IMO there was a dramatic rise in risk on this debt, with all that is going on in the world, flys in the face of commonsense.

Treasury bills were paying .237percent last month, that is less than a quarter of a percent per annum.

what happens if rates move up a percent or two. Thats why the states are deep in it. They are painted into a corner.

And gold is in a bubble....yeah right.

cheers grant