The Treasury Department, in its boldest move yet, is expected to announce a plan on Tuesday to invest up to $250 billion in banks, according to officials. ... The Dow Jones industrial average gained 936 points, or 11 percent, the largest single-day percentage gain in the American stock market since the 1930s.
I have been vocal (or pixally) in blaming Chimpy and Greenspan for much of the economic turmoil going on. But I should acknowledge the obvious: They merely amplified the policies of Ronald Reagan, the father of "run up the deficits, nobody give a fuck."
The Federal deficit when Reagan cam in was roughly a trillion dollars. By the time Chimpy leaves office, it will be eleven trillion dollars. That debt has to be repaid eventually. The debt service is eleven times higher now.
30 year t-bills have a 4.5% interest rate. 11 trillion means that we have to pay $55,740,000,000 in debt service each month. That is almost five times as much as we are paying for Chimpy's Wars and is roughly double what we had to pay before Emperor Disgustus began his Most Excellent Adventures. Sure, we'll refinance a lot of that, but we still have to pay it down.
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