How Much is That Deficit in the Window?

[jpmassar]

What do you think the per capita amount of interest people in the US would have to pay on this year's deficit amounts to (assuming borrowing is at current 10 year Treasury bond rates):

Poll

Comments

[wild_irises]

Hmmm. Between that and the Reinhardt-Rogoff coding error ...

Now if only anyone cared.

[fich]

This is a useful stat if you're willing to ignore last year's deficit, and next year's deficit, and the whole national debt thing. And having to pay off the deficit, not just the interest on it.

[gunga_galunga]

And that it won't just get rolled into new bonds in 10 years.

[jpmassar]

As I understand it, according to mathematical prediction models based on current long-term interest rates, the answer to that is a qualified "yes, probably, or even possibly lower."

But then the 30 year treasury in 1984 wasn't a very good predictor of interests rates this year...

[prock]

Note that government spending is roughly $20k per capita.

[jpmassar]

Federal or overall?

[prock]

Overall.

[clutch_c]

Heh. My guess was $600B *.01 / 300M = $20. But I guessed right by going up to $30.

Re: ahhh, I got this totally wrong

[barking_iguana]

But the point is we're already managing that. It costs us in that some of our taxes are going to service the debt. But talk of it being unserviceable is just wrong.