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CNN reported on March 20 that the congressional budget office projected deficits “averaging almost $1 trillion require for another 10 a few years.” In three years our debt will be more than $15 trillion. Tax receipts may increase by 3% per year, considering that the economy recovers placing them at almost $1.1 mil. Interest rates will continue higher once we sell individuals debt. For the 6% mixed maturity basis, annual interest expense on Federal Budget will be $900 million. Do you see a trend the following? These projections anticipate a slow trend higher in interest rates, as we borrow growing. What happens if marketplace gets spooked? Greece debts are priced over 7% interest on April 6th for 10 year notes.

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