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Here are a couple of charts from Tim Wallace regarding interest on the
national debt. The first chart
shows the interest rate is
falling as debt skyrockets.
Interest Rates vs. National Debt
 
click on any
chart for sharper image
Key Questions
1.
How long can
the trend last?
2.
How low
will the rate go?
I do not know the answers to those
questions, nor does anyone else. However, a rise in interest rates would cause a
shocking increase in interest
on the national debt.
Interest on National Debt
at Current Rate vs. Historical Average
Should interest rates rise to the long-term average, interest on the
national debt would more than double from the 2011
figure of $454 billion dollars.
Here is a chart from the National
Debt Clock site.
The site notes "Maturity of U.S. debt ranges from less than a year
to over 20 years, with
the average maturity
about 3 years. More than half of the debt, however, is short term, maturing in less than a year."
That is an interesting
assertion short-term debt
is at .09%, 10-year notes
yield 1.67%, and the 30-year bond yields a mere 2.79%.
However, interest is on outstanding securities. A bond with a 6% yield maintains that yield until
maturity. The average yield in Wallace's charts paid comes
from Treasury
Direct.
Currency Crisis
Coming
If you get the idea a crisis of some sort is coming, fueled by
out-of-control deficit spending
as well as the Fed's ridiculous "Operation
Twist Policy", then you
get the right idea.
The Fed ought to be selling long-term bonds at these rates, locking in financing at attractive rates, not buying
those bonds hoping to
drive yields still lower.
Of course, that latter statement
assumes there should be a Fed or deficit spending in the first place, neither
of which I believe.
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