Servicing our debt would become a major problem if interest rates were to return to historic levels, according to Yuval Levin at NRO:[I]f the current very low rate continues, and our fiscal policy basically follows the track laid out by the president's last budget, then the interest on the debt 10 years from now will be a little over $350 billion. If the rate goes back to the 20-year average, however, interest on the debt 10 years from now will be more like $1.15 trillion. Again, no small difference. Indeed, it is enough to make some prominent elements of our deficit debate seem a little ridiculous.The debate is a "little ridiculous" at the lower number of $350 billion but who's counting? Not Obama, whose policies foretell deficits over a trillion dollars for the next decade.But what about all these proposals to reduce the deficit?Many of the savings in the various deficit-reduction proposals bandied about in recent weeks would also be swamped by the same effect. But of...(Read Full Post)