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READ>*US Budget Projected Interest Rate Sensitivity Analysis: Quantifying The US Default Buffer

Submitted by Tyler Durden on 02/13/2010 17:02 -0500

*NOTE: Long piece filled with images

While the realistic outcome over the next 12 months will likely be between the Medium and the High cases, it implies that ever more tax dollars will have to be used simply to cover interest payments to both domestic and foreign creditors. And should the liquidity and funding crisis in Europe escalate, and the hatchling Black Swan migrate across the pond, causing a spike in Treasury Interest Rates, then what pundits lament about Japan's debt spiral will promptly be forgotten, as it becomes an all too real phenomenon not across the Pacific but here in our own country.

http://www.zerohedge.com/article/us-budget-projected-interest-rate-sensitivity-analysis