Interest payments on the US public debt

[Beet]

http://www.usgovernmentspending.com/spending_chart_2010_2011USp_13s1li011mcn_90s90l90f

Interest on the debt is approaching 2.5%. The same site states that a default becomes likely when interest on the debt is equal to around 12% of GDP.

The US does not face the same problems as Europe because the Federal Reserve is willing to support US bond prices and lend to the US government. That is why no country outside the euro zone has this problem of sovereign debt crisis.

The US's risk is balance of payments crisis, which is foreigners stop sending capital to the US and start sending capital out. The US's ability to withstand this is not based on interest as a percentage of GDP or revenue, but the US's trade deficit.

[Beet]

http://www.usgovernmentspending.com/spending_chart_2010_2011USp_13s1li011mcn_90s90l90f

Interest on the debt is approaching 2.5%. The same site states that a default becomes likely when interest on the debt is equal to around 12% of GDP.

The US does not face the same problems as Europe because the Federal Reserve is willing to support US bond prices and lend to the US government. That is why no country outside the euro zone has this problem of sovereign debt crisis.

The US's risk is balance of payments crisis, which is foreigners stop sending capital to the US and start sending capital out. The US's ability to withstand this is not based on interest as a percentage of GDP or revenue, but the US's trade deficit.

Really? Iceland, Hungary, and Japan just name a few. But compared to the rest of the world our financial position is amazingly better.

Those countries dont have sovereign debt crisis right now.