Interest on Federal Debt Hit $104B in First Half of FY2012—Despite Low Interest Rates

[hvactec]

(CNSNews.com) - Even though the U.S. Treasury in March was paying an average interest rate of only 2.187 percent on Treasury securities, the federal government still needed to pay a record $104.413 billion in interest on its publicly held debt in the first six months of fiscal 2012, the most it has had to pay in the first half of the year in the 15-year span for which the Treasury Department has posted daily statements online.

Fiscal Year 2012 began on Oct. 1, 2011 and will end on Sept. 30, 2012.

The $104.413 billion in interest the Treasury paid to bondholders from October through March, as reported on the Daily Treasury Statement for March 30, was the most the Treasury has paid in interest on it securities (in non-inflation-adjusted terms) in the first half of a fiscal year since at least 1998.

read more Interest on Federal Debt Hit $104B in First Half of FY2012

 

[Mr. H.]

That can't be good.

 

[Liability]

If the interest rates jump, that debt burden is gonna get REAL heavy real fast.