A Reason to be a bit Uneasy

Since 2000 the US debt has gone up by a factor of about 3.5.

But interest paid on the debt has only gone up by about 25%.

This is because interest was at 6% then and now is at 2%

In addition the size of the economy has grown since 2000 making the same amount of debt a smaller percentage of GDP.

Right now interest payment on the US debt increases by about 220 Billion for each 1% increase in interest rates.

I suppose the US can go on with big deficits for some time,

but at some point in time US spending has to be curtailed.

Argentina and Greece are painful examples.