In today's alternate interest rate reality, it is obvious that the biggest beneficiary of Mr. Bernanke's Grand Experiment has been the federal government. Total interest owing on the debt for fiscal 2013 is projected to be "only" $225 billion. While this seems a huge sum (and it is), it is the same amount of interest that accrued back in 2006 when the level of the federal debt was only 40 percent of its current level! Unfortunately, that situation is unlikely to persist.
Using the projections as noted above, the CFRB's projections suggest that the current interest rate environment will not end with a whimper. Spending on interest payments will rise to $505 billion by 2018 and $844 billion by 2023; over the coming decade, interest owing on Washington's debt is projected to grow by 400 percent at the same time as the debt itself is only projected to grow by around 60 percent.