|Chart 1: Interest Payments|
|Chart 2: U.S. Debt Vs. Interest Payments|
|Chart 3: 10 Year U.S. Bond Yield Vs. Interest Payments|
|Chart 4: U.S. Government Tax Revenue|
|Chart 5: Tax Revenue Vs. Savings Rate|
The question is, what can we expect from the coming year? The projected tax revenue is going to follow this trajectory according to the Federal Budget. This is more than enough to pay for the increase in interest payments due to higher public debt and higher interest rates. It will all depend on what Janet Yellen will do. If she decides to increase QE, we might see even lower interest payments due to lower interest rates.