National Debt: The Race Toward $10 Trillion

• Report this Comment On September 30, 2008, at 3:36 PM, TMFSinchiruna wrote:

  Amen, Mr. Morgan! :)

• Report this Comment On October 03, 2008, at 11:41 PM, buywater wrote:

  Itis not surprising that Mr. Housel has not waded through the whole 400 pages, but he may be surprised to note the increase in the national debt limit as one of the earmarks: to $11.350 trillion.

• Report this Comment On October 04, 2008, at 12:43 PM, TMFHousel wrote:

  buywater,

  Thanks for your comments. The $11.350 trillion figure is a debt-ceiling figure, not the total amount of current national debt. The $10 trillion number was actually broken the day after this article was published.

  -Morgan Housel

• Report this Comment On October 05, 2008, at 10:02 AM, JOttoN wrote:

  I was watching the debt numbers looking for the flip to $410T. I found it very interesting that from 30 Sep to 1 Oct, the US added $100B in new debt.

  One day and $100B in new debt!

  I have a feeling that occurring on the first day of the fiscal year wasn't mere coincidence.

  There are some that make big deal about the ~$17B in earmarks for this government fiscal year. We often get "something" for that ~$17B, a new road, a new museum, something that translates to jobs in either the long term or the short term.

  How about interest expense on the National Debt? $431 Billion so far this fiscal year, with one more month to go.

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

  We get nothing for that $431 Billion. You know how much was in the budget for that fiscal year to pay interest expense? Sit down. $280 Billion. Assuming for a moment that the interest expense for Sep pushes that $431 Billion to $470B, that's a shortfall in the budget of $190 Billion. They never planned to pay the interest expense; it's just rolled over into new debt.

  It makes zero down payment sub-prime mortgages look fiscally responsible. The only difference is the US Treasury has the option of printing money when it wants by holding an auction.

  Jim

• Report this Comment On October 05, 2008, at 10:03 AM, JOttoN wrote:

  I was watching the debt numbers looking for the flip to $10T. I found it very interesting that from 30 Sep to 1 Oct, the US added $100B in new debt.

  One day and $100B in new debt!

  I have a feeling that occurring on the first day of the fiscal year wasn't mere coincidence.

  There are some that make big deal about the ~$17B in earmarks for this government fiscal year. We often get "something" for that ~$17B, a new road, a new museum, something that translates to jobs in either the long term or the short term.

  How about interest expense on the National Debt? $431 Billion so far this fiscal year, with one more month to go.

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

  We get nothing for that $431 Billion. You know how much was in the budget for that fiscal year to pay interest expense? Sit down. $280 Billion. Assuming for a moment that the interest expense for Sep pushes that $431 Billion to $470B, that's a shortfall in the budget of $190 Billion. They never planned to pay the interest expense; it's just rolled over into new debt.

  It makes zero down payment sub-prime mortgages look fiscally responsible. The only difference is the US Treasury has the option of printing money when it wants by holding an auction.

  Jim

• Report this Comment On October 05, 2008, at 10:11 AM, JOttoN wrote:

  Sorry about the type/double post. I get too excited when I start on the Debt.

  We could cut earmarks, we can cut discretionary spending, we can even cut mandatory spending with a change in the law. But you can't cut interest expense on the debt. You can decide not pay it, but it just keeps on accruing.

  In all likelihood the interest expense on the debt is going to exceed spending for the Dept of Defense. [Afghanistan and Iraq are separate appropriations from the DOD budget.]

  Arghhhh,

  Jim

Add your comment.