“With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.”
The problem: The Times understated the annual interest by more than $180 billion.
For fiscal year 2009 the federal government paid $202 billion in interest on the public debt.
But that figure doesn’t include interest paid on intragovernmental holdings, primarily composed of Treasury securities held by the Medicare trust fund and Social Security trust fund.
Total interest on the debt that includes intragovernmental holdings is $383.3 billion, says Fox News analyst James Farrell. That equates to the gross domestic product of Malaysia or Belgium.
The $383 billion total in interest paid annually on the federal debt is equal to the size of Norway's sovereign wealth fund, one of the largest in the world.
It's the amount estimated to be the value of all Internet content as of 2007, the latest data available from web reasearchers Outsell Inc. The $383 billion equals the amount the US government spent on its computers and data systems in fiscal 2005.
It's 49% more than the estimated cost for Japan's last stimulus package in December 2008, and it's what Nigeria has lost to theft and waste in the last 46 years.
The total $383 billion in interest on the federal debt would pay for slightly more than half of the Defense Department’s budget ($674.7 billion in FY2008). It would pay for just shy of half the annual budgets of Treasury ($751.2 billion) and Health and Human Services ($721.7 billion).
The $383 billion would cover the budget for the Dept. of Energy about 15 times over, Farrell notes.
And how many government agency budgets could you pay for with $383 billion?
The $383 billion would pay for all on-budget costs for the following 18 government agencies (FY 2008), with about $12 billion in change left over, Farrell says. The total $383 billion would cover the combined budgets for Commerce, EPA, Homeland Security, Housing and Urban Development, and the budgets for the entire Judiciary and Legislative branches:
Agency
FY 2008 on-budget
Executive Office of the President
$289 M
General Services Administration
$340 M
Small Business Administration
$1.3 B
Legislative Branch
$4.5 B
National Science Foundation
$6.3 B
The Judiciary
$6.5 B
Environmental Protection Agency
$7.4 B
Corps of Engineers
$9.1 B
Commerce
$9.6 B
Interior
$10.6 B
National Aeronautics and Space Administration
$17.2 B
Energy
$22.7 B
State
$23.1 B
Justice
$26.4 B
Homeland Security
$50.6 B
Housing and Urban Development
$50.9 B
Labor
$57.9 B
Education
$65.4 B
TOTAL:
$370.2 B
And $383 billion would cover all federal government expenditures on the following areas (with about $13 billion left over):
Category
FY 2008 expenditures
Natural resources & the environment
$37.2 B
Agriculture
$17.5 B
Transportation
$81.5 B
Education
$91.5 B
Veteran benefits & services
$88.3 B
Administration of justice (law enforce. & courts)
$49.1 B
TOTAL:
$369.9 B
Sources: Office of Management & Budget, Mid-Session Review, Historical Tables, Budget of the U.S. Government, Fiscal Year 2010
So with these figures in mind, and knowing the US government won't balance the budget for the next ten years--ask yourself this: What foreign government would even want to buy our debt?
Hallo, part of the problem could be solved when the TOBIN-TAX would be introduced. With the TOBIN-TAX we could pay for the BUCKET CHAIN which could produce two Billion jobs worldwide.
See more unter goldenes-dreieck.de. If this is not done soon we will have WWIII started very soon. AFPAK is the place to watch. Have a nice day.
November 27, 2009 at 4:21 am
Richard White
Solutions: 1. Get rid of all Washington D.C. Politicians. 2. make sure no attorney can be elected to office, only elect people whom produce something of value to society. 3. Reverse and stop the federal reserve act. 4. Go on the Gold standard act. 5. Pass a law to have no pork barrels. 6. Balanced budget ammendment. 7. GET US OUT OF THE UNITED NATIONS!!!
November 26, 2009 at 10:40 pm
Habbie
At 227M registered voters, why not send every one of them 1.668 million dollars - the interest being paid divided by the number of adults over 18 in the US according to the 2008 census. I'm sure that they could stimulate the economy.
November 26, 2009 at 3:32 pm
Don Mindach
Take over Mortgages, Health insurance, Auto and Banking industries. All the time spending more than anyone else.
Hope and Change, but not for the better!
November 26, 2009 at 1:17 pm
Michael Curran
This is only the beginning. Should the health care plan be signed ever more debt will clime. If we as a nation side with Obama's "Going Green Plan" succeeds we Americans will be in need.
November 26, 2009 at 11:46 am
Frank
We have become a nation of, by, and for the Government. We are being boondoggled by the politicians, left and right, in both the Senate and the House of Misrepresentatives. We face three more years of misuse and abuse of what's left of our national assets.
November 26, 2009 at 2:45 am
Marty
Can't we just use some of the money to buy the Pittsburgh Pirates and restore them to respectabiliy?
Nevermind. The way the government runs things, they could have a billion dollar payroll and still lose 100 games.
November 25, 2009 at 11:55 pm
jerriemc23
I used to vote for the left, and not really wanting to believe how tax n spend they really do. Last night's State Dinner cost US a fortune. Rome is burning folks and we have elected officals playing the violin. I'm voting independant each race and not voting for president until we get an independant in there. BM3 McGehee USS Flint AE-32
November 25, 2009 at 2:23 pm
Sterling Smith
These calaculations are based on very low interest rates, whcih are currently artifically low. When rates climb these numbers will rise very quickly. This will work just like the people who were caught in adjustble rate mortgages, as much of debt is financed over short periods of time.
I amgine if rates returned to Carter era....
The interest on debt is now four times the 1981 budget deficit.
November 25, 2009 at 10:34 am
Theodore J. scotes
This is a government running amok, whose sole purpose is remaining in office no matter what happens to the country. If we don't act now and remove ALL from Congress, Republicans and Democrats alike, I predict we will see the bankruptcy of the United States within two years. This can't go on ad infinitum, soon we'll have to pay the piper( China?)
Semper Fi
November 25, 2009 at 9:54 am
BANKRUPT AMERICAN
YOU CAN START FIXING THIS BY ENDING THE FEDERAL RESERVE SYSTEM. THE OWNERS OF THE FEDERAL RESERVE CAUSED ALL THIS ECONOMIC CHAOS, SO LETS JUST END THE FEDERAL RESERVE SYSTEM. IT IS A DEBT SLAVERY SYSTEM
Liz,
That interest would cover 4,145,395 jobs. I divided the interest by GDP ($14.266 tln). I got a rate of 2.7%. Then I multiplied it by the labor force of 154,287,000 and got the employment number. Subtracting 10.2% from the 2.7% and we get a 7.5% rate which we were promised from the stimulus which would have covered two years of interest. Liz, you and your family have a happy Thanksgiving. BobH
November 24, 2009 at 7:38 pm
earle,florida
The answer is no-one,period! What is sad,..is having to raise interest rates to entice buyers of our faux-paperchase greenback. Unfortunately,.inflation will rear it's ugly head putting us further in debt. I'll use this example; recently our country leaders literally paid-off a senator from Louisiana to the tune of $100mn to vote in favor of the "HealthCare Bill"! We are now,the finished product of a once vibrant passe democracy. Only a few straws are left to break the camel's back! Thanks E'Mac
The interest "paid" on the intragovernmental holdings are just more of the same "special obligation" bonds, meaning it's just more debt that they will tax us out of in the future. Why not just delete all of these bonds and start over with some honest accounting? Oh, I forgot who we are dealing with, forget it.
November 24, 2009 at 5:02 pm
Tim Grady
How many jobs would have been "created or saved" annually with $383 billion if we weren't buried in debt? How about 7,660,000 jobs with an annual salary of $45,000 plus all taxes! Way to go, federal government. Bury us alive.
How many jobs would have been "created or saved" annually if we weren't buried in debt? How about 7,660,000 jobs with an annual salary of $45,000 plus all taxes! Way to go, federal government. Bury us alive.
Elizabeth MacDonald is the stocks editor for Fox Business Network. She is recognized as one of the top prize-winning business journalists in the country, and has received 14 awards, including the top prize in business journalism, the Gerald Loeb Award for Distinguished Business Journalism, and the Newswomen's Club of New York Front Page Award for Excellence in Investigative Journalism.
Subscribe to Comments
7,095 views
Tyll Ruhtenberg
Hallo, part of the problem could be solved when the TOBIN-TAX would be introduced. With the TOBIN-TAX we could pay for the BUCKET CHAIN which could produce two Billion jobs worldwide. See more unter goldenes-dreieck.de. If this is not done soon we will have WWIII started very soon. AFPAK is the place to watch. Have a nice day.
Richard White
Solutions: 1. Get rid of all Washington D.C. Politicians. 2. make sure no attorney can be elected to office, only elect people whom produce something of value to society. 3. Reverse and stop the federal reserve act. 4. Go on the Gold standard act. 5. Pass a law to have no pork barrels. 6. Balanced budget ammendment. 7. GET US OUT OF THE UNITED NATIONS!!!
Habbie
At 227M registered voters, why not send every one of them 1.668 million dollars - the interest being paid divided by the number of adults over 18 in the US according to the 2008 census. I'm sure that they could stimulate the economy.
Don Mindach
Take over Mortgages, Health insurance, Auto and Banking industries. All the time spending more than anyone else. Hope and Change, but not for the better!
Michael Curran
This is only the beginning. Should the health care plan be signed ever more debt will clime. If we as a nation side with Obama's "Going Green Plan" succeeds we Americans will be in need.
Frank
We have become a nation of, by, and for the Government. We are being boondoggled by the politicians, left and right, in both the Senate and the House of Misrepresentatives. We face three more years of misuse and abuse of what's left of our national assets.
Marty
Can't we just use some of the money to buy the Pittsburgh Pirates and restore them to respectabiliy? Nevermind. The way the government runs things, they could have a billion dollar payroll and still lose 100 games.
jerriemc23
I used to vote for the left, and not really wanting to believe how tax n spend they really do. Last night's State Dinner cost US a fortune. Rome is burning folks and we have elected officals playing the violin. I'm voting independant each race and not voting for president until we get an independant in there. BM3 McGehee USS Flint AE-32
Sterling Smith
These calaculations are based on very low interest rates, whcih are currently artifically low. When rates climb these numbers will rise very quickly. This will work just like the people who were caught in adjustble rate mortgages, as much of debt is financed over short periods of time. I amgine if rates returned to Carter era.... The interest on debt is now four times the 1981 budget deficit.
Theodore J. scotes
This is a government running amok, whose sole purpose is remaining in office no matter what happens to the country. If we don't act now and remove ALL from Congress, Republicans and Democrats alike, I predict we will see the bankruptcy of the United States within two years. This can't go on ad infinitum, soon we'll have to pay the piper( China?) Semper Fi
BANKRUPT AMERICAN
YOU CAN START FIXING THIS BY ENDING THE FEDERAL RESERVE SYSTEM. THE OWNERS OF THE FEDERAL RESERVE CAUSED ALL THIS ECONOMIC CHAOS, SO LETS JUST END THE FEDERAL RESERVE SYSTEM. IT IS A DEBT SLAVERY SYSTEM
Bob Hickerson
Liz, That interest would cover 4,145,395 jobs. I divided the interest by GDP ($14.266 tln). I got a rate of 2.7%. Then I multiplied it by the labor force of 154,287,000 and got the employment number. Subtracting 10.2% from the 2.7% and we get a 7.5% rate which we were promised from the stimulus which would have covered two years of interest. Liz, you and your family have a happy Thanksgiving. BobH
earle,florida
The answer is no-one,period! What is sad,..is having to raise interest rates to entice buyers of our faux-paperchase greenback. Unfortunately,.inflation will rear it's ugly head putting us further in debt. I'll use this example; recently our country leaders literally paid-off a senator from Louisiana to the tune of $100mn to vote in favor of the "HealthCare Bill"! We are now,the finished product of a once vibrant passe democracy. Only a few straws are left to break the camel's back! Thanks E'Mac
Mike
The interest "paid" on the intragovernmental holdings are just more of the same "special obligation" bonds, meaning it's just more debt that they will tax us out of in the future. Why not just delete all of these bonds and start over with some honest accounting? Oh, I forgot who we are dealing with, forget it.
Tim Grady
How many jobs would have been "created or saved" annually with $383 billion if we weren't buried in debt? How about 7,660,000 jobs with an annual salary of $45,000 plus all taxes! Way to go, federal government. Bury us alive.
Tim Grady
How many jobs would have been "created or saved" annually if we weren't buried in debt? How about 7,660,000 jobs with an annual salary of $45,000 plus all taxes! Way to go, federal government. Bury us alive.