Maybe quantitative easing wasn't the best option. Even though U.S. national debt is now more than $14 trillion, the Treasury is issuing close to $200 billion in debt this week. Making matters worse are the continually rising interest rates. The government has already spent $80 billion in interest on its debt during the 2011 fiscal year, which marks a 9.1% increase over what it had this time last year.
So as the government continues to support its bond buyout program, what do we really expect to happen to national debt? Even if QE does spark meaningful economic growth and consumer spending - which presumably justifies the program's $600 billion price tag - there will still be a $14 trillion elephant in the room.
-The Finance Whisperer