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Wednesday, January 11, 2006

Your Tax Dollars at Work Servicing the Debt

With interests rates rising, the debt rising, and payments on inflation indexed bonds rising, guess what? Interest on the debt increased sharply:

Interest Grows, Washington Wire, WSJ: Federal spending to cover net interest on the public debt surged ... to $58 billion in the first quarter of fiscal 2006 from $43 billion a year earlier, according to the Congressional Budget Office. That means $1 of every $11 in federal spending in the September-to-December quarter went to interest "Costs were driven up by higher rates of inflation (which affect the amount paid on inflation-indexed securities), higher short-term interest rates, and growing debt," CBO said in a monthly budget report....

    Posted by on Wednesday, January 11, 2006 at 12:12 AM in Budget Deficit, Economics | Permalink  TrackBack (0)  Comments (1)

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