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What if by 2029 the national debt is $50 trillion and the average interest cost is 8%? Interest on the debt would be $4 trillion per year, over 60% of federal tax revenue, and annual budget deficits would likely exceed $5 trillion. This is optimistic, as it assumes no recession. This also assumes no government bailouts of banks, GSEs, pension funds, homeowners, student loans, state governments, municipalities, etc. that may be adversely affected by higher interest rates, such as mortgage rates above 10%, which is highly unlikely.