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.

Please click here for Andrews' article, and here for graphs and other items on the debt buildup.