I hope you are not taking comfort in the fact that the government’s servicing costs on our debt is low because of (temporarily?) low interest rates. This is disguising the true long term cost of our growing indebtedness. Servicing costs are part of our annual expenses, and low interest rates serve to keep our current deficit lower than it would normally be. If interest rates simply return to the average of the past ten years, our debt service costs will soar.
Add to this the fact that Treasury is loading up on short term debt (lower interest rates) instead of issuing longer term instruments, and we have one more example of short term expediency.
