Top global accounting firm Deloitte says US debt crisis is 'bigger than you think'
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June 13, 2012
US Government debt "could spiral out of control"
Interest payments add a new level of fiscal pain
JPMorgan boss to apologise before US CongressWHAT is the real cost of the US Government's nearly $US16 trillion ($16.07 trillion) debt?
"The debt crisis is likely bigger than you think," a report issued by Deloitte, one of the world's largest accounting firms, concluded.
That is because interest payments on the country's massive debt add a whole new level of fiscal pain to the problem.
Interest payments on the national debt alone, it noted, are expected to total some $US4.2 trillion over the next decade.
And that number could go higher depending on rates.
The lead author of the Deloitte study, director Bill Eggers, stressed that US Government debt could quickly spiral out of control if investors become less willing to lend more money.
"If interest rates go up by simply three per cent over the next decade, the additional cost to the Treasury, just for interest payments, would equal the peak combined cost of the wars in both Afghanistan in Iraq," he said.
The report showed that $US4.2 trillion being spent on interest could instead:
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