Interest on Debt to Surpass Defense, NonDefense Discretionary Spending - US

[Chef Ramsay]

The U.S. has come a long way since the days of trillion-dollar deficits, just a few years ago. The White House projects 2016 will have the smallest budget deficit in eight years. Yet the budgetary impact of the debt that’s been accumulated–$18 trillion in total, $13 trillion of that owed to the public–will reassert itself.

Currently, the government’s interest costs are around $200 billion a year, a sum that’s low due to the era of low interest rates. Forecasters at the White House and Congressional Budget Office believe interest rates will gradually rise, and when that happens, the interest costs of the U.S. government are set to soar, from just over $200 billion to nearly $800 billion a year by decade’s end.


By 2021, the government will be spending more on interest than on all national defense. according to White House forecasts. And one year later, interest costs will exceed nondefense discretionary spending–essentially every other domestic and international government program funded annually through congressional appropriations. (The largest part of the budget is, and will remain, the mandatory spending programs of Social Security, Medicare and Medicaid. Mandatory spending is over $2 trillion and is set to double to $4 trillion by 2025.)

More...http://blogs.wsj.com/economics/2015/02/03/the-legacy-of-debt-interest-costs-poised-to-surpass-defense-and-nondefense-discretionary-spending/?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth

[BitMos]

generally those receiving the interest (big money to buy the daughter of those fighting for example, but I digress), have a tendency to not take the risk of being too visible even by the "lowest grunt" as such they will find a solution, it's just accounting (but it can buy your daughter).

[Ingatqhvq]

I know I have read that if America went with the cuts via sequestration, then America would suffer short-term, benefit long-term, but if the sequestration cuts was rolled back, long-term it's going to affect everyone for the worse.
Does anyone have any forecast based on facts, exactly how this will affect us?
All I know is, if you spend all your money on debt/interest, then you have none for anything else..

[Possum577]

Well with 10 years to plan for it you'd think we'd do something to fucking stop it!

How historic would it be for one US president to devote one term to paying off the debt...no additional spending, tightening our financial actions?

Of course the real challenge would be for the man or woman that comes after that president to not rack up a bunch of debt again. This would be the most humble act of a US president since George Washington stepped down after serving two terms (which set the precedent for a two term limit.)

[Agestorzrxx]

If you were part of the tin foil hat crowd and wanted to make the argument that the 'One' wanted to take the country down a few pegs on the world stage, then tripling the national debt would do nicely to that end.
Slash mil spending, reduce the size of the mil, severely limit the country's ability to project power for it's own self interest and that of it's allies.
Then again, it could just be about buying votes.

[Spendulus]

Well with 10 years to plan for it you'd think we'd do something to fucking stop it!

How historic would it be for one US president to devote one term to paying off the debt...no additional spending, tightening our financial actions?

Of course the real challenge would be for the man or woman that comes after that president to not rack up a bunch of debt again. This would be the most humble act of a US president since George Washington stepped down after serving two terms (which set the precedent for a two term limit.)

IIRC various Republican candidates for President in 2012 advocated this.  Example, Michelle Bachman laid out a plan for stopping the crazy.   Attracted a small segment of the population, alienated a larger segment.

[Elwar]

Well with 10 years to plan for it you'd think we'd do something to fucking stop it!

How historic would it be for one US president to devote one term to paying off the debt...

Even Ron Paul's plan of cutting a whole lot of spending including ending the wars and bringing all the soldiers home would only balance the budget after 4 years and begin paying off the debt during his second term.


If we wanted to pay off the debt in 30 years it would cost at least an extra $800 billion per year.

[jaysabi]

By 2021, the government will be spending more on interest than on all national defense.

Clearly we can't let this happen. We must spend more on defense to prevent interest on the debt from being the largest government expenditure!

[Possum577]

I know I have read that if America went with the cuts via sequestration, then America would suffer short-term, benefit long-term, but if the sequestration cuts was rolled back, long-term it's going to affect everyone for the worse.
Does anyone have any forecast based on facts, exactly how this will affect us?
All I know is, if you spend all your money on debt/interest, then you have none for anything else..

This is it.

If the US accepted the reality that a few years of lean spending would allow the debt to be brought under control and would benefit the country for the very long term. The President who could do that would be seen (after many years) as a hero, a father of the country.

Unfortunately most of today's politicians only care about themselves and what their "work" impacts today.

[jaysabi]

I know I have read that if America went with the cuts via sequestration, then America would suffer short-term, benefit long-term, but if the sequestration cuts was rolled back, long-term it's going to affect everyone for the worse.
Does anyone have any forecast based on facts, exactly how this will affect us?
All I know is, if you spend all your money on debt/interest, then you have none for anything else..

This is it.

If the US accepted the reality that a few years of lean spending would allow the debt to be brought under control and would benefit the country for the very long term. The President who could do that would be seen (after many years) as a hero, a father of the country.

Unfortunately most of today's politicians only care about themselves and what their "work" impacts today.

Absolutely. Being viewed as a hero 30 years from now as 0 value for your reelection campaign in 2 or 4 years.

[BitMos]

they got a credit line? the IMPERIAL FORCES have this, we will see who handle the stick in the negotiation:



Maybe when the values align, like no cheating policy on loved ones.

(for the Internationatists that think that they could through what ever means weaken the Forces that defend the CONSTITUTION OF THE UNITED STATES OF AMERICA AND BoR, shall know, that great danger awaits you. Why? Because who wants to be ruled by you, what did you do positively, could you produce a C. worth anything?).