Effective Interest Rates: If Debt Levels & Interest Rates Rise Dramatically
Beyond 2010, Net Interest Payments Could Soar
USA Net Federal Debt Outstanding & As Percent of Total Revenue, 1980 — 2016E
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013E 2016E
BG, ms ee em er — res ee se ea — ses es ca er — pees es ne aS es i 3 aS Soe — aS HS Soe aes eS Sl fk soe Ae 30% am Net Interest Payment ($B) $500 ISIS cs 5 mks ce 9 ms es Ts Hs Ses ect — saa Les ces ot — ee 5 ——As % of Total Revenue 24% g g SE BAGG 2 tes ws ces — ces cate was ten — tee cas mts — ee es ls Hee ts en St — es ik ts — ti af ts = Pi 5 y = > e cw (CI S01 8 a Ree ieee = . 3 a g 12% © foes | 3 $200 eA ac ce ma — esr cts oa es — as = | il Mena! > Sa i i + 3s 2 ” C4 6% $100 | BREET EEE ‘ie ] $ ] T T T T T T T T T T T 0%
KP Note: CAGR is compound annual growth rate. Source: White House Office of Management and Budget. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 167
Rising Debt Periodic Large Level & Interest One-Time Payments Charges
Entitlement Spending
Debt Composition
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 168
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