Tsunami of Debt Facing the U.S. Government
Edmund Andrews of The New York Times recently outlined three key issues facing the U.S. Treasury: a massive wave of new debt, a balloon of maturing short-term borrowings, and the potential for rising interest rates. His observations include:
- The national debt now tops $1.2 trillion, almost doubling in the last two years alone.
- The $1.6 trillion in marketable debt is maturing by March 31, 2010.
- The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years.
- An increase in one percentage point in the Treasury's average cost of borrowing would cost American taxpayers and extra $80 billion this year -- about equal to the combined budgets of the Department of Energy and the Department of Education.