Trends in Interest Rates on National Debt Suggest Currency Crisis is Coming

Courtesy of Mish.

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

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.

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