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In response to
"The real question: What will that 700 billion be as a percentage of GDP. -- nm"
by
TWuG
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Interest payments come from the current account, and represent yearly outgoings from the government revenue generated. Very roughly, 700bn from a gov
Posted by
Loyola
Nov 24 '09, 07:17
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take today of 2.8 trillion is excessive in the extreme, it's a 25% headache, while projected gov debt as a % of GDP in 2018 is expected to be 60 odd % iirc, which is low comparatively speaking.
However, the size of the interest payment due, which will rise as gov debt becomes due (and will be refi'd) will only mean one thing (albeit 700bn yearly outlay as measured as a % of GDP is a most redundant figure precisely because it is due every year, unlike the rolling over of debt); higher taxes and continued devaluation of the dollar.
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