Rising Debt Periodic Large Level & Interest One-Time Payments Charges
Entitlement Spending
Effective Interest Rates
Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA
KP is American Recovery & Reinvestment Act programs. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 161
Effective Interest Rates: While USA Debt Has Risen Steadily Since 1981, Rates Have Fallen Steadily, so the Cost of Debt Has Potentially Been Held Artificially Low
USA Net Federal Debt Outstanding & Effective Interest Rates, 1980 — 2010
BT me mm wm — mn ae ee se i nc nH a 10%
mama Net Debt Outstanding Effective Interest Rates $8,000 - = = = 30-Year Avg. Effective Interest Rate
Net Debt Outstanding ($B) Effective Interest Rates (%)
$0 FF T T T T T T T T T T T T T T T T T T T T T T T T T T T T T 1 0% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
KP Source: White House Office of Management and Budget. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 162
HOUSE_OVERSIGHT_020922