I saw a few articles recently where well respected individuals (Paul Volker & Jim Cramer) are calling for the US to issue 2 Trillion in 30 year notes now to replace the current 1-2 year notes that they used to finance a lot of TARP. The 30 year notes could be priced somewhere between 2-4% whereas the expiring notes due next year will probably have to be reissued at 6%+ causing the interest payments to double from their current point.

This has a lot to do with proper financial planning

On a 1 Trillion Note 24m@3%
Monthly Payment: $42,981,211,979.56
Total Payment: $1,031,549,087,509.37
Interest: $31,549,087,509.37

On a 1 Trillion Note 24m@6%
Monthly Payment: $44,320,610,252.76
Total Payment: $1,063,694,646,066.19
Interest: $63,694,646,066.19

On a 1 Trillion Note 360m@3%
Monthly Payment: $4,216,040,337.29
Total Payment: $1,517,774,521,426.04
Interest: $517,774,521,426.04

I understand this method is used to solve a liquidity problem that many people fear the US is going to face in the next 2-5 years. By lowering the over all debt ratio of the nation you can preserve capital to invest into production or infrastructure at a rate of almost $40 Billion per month (difference between 2y & 30y monthly payments). These seems like a good idea...

Well here is my problem... can we trust the US Government to use this 'surplus' of capital (relative to the cash flow of short term notes)? I would have to say undoubtedly NO. This is by no means an argument against going with long term notes to lock in lower interest rates. I think it always prudent to do that when you can.

Did you know that while the Fed Funds Rate stays near zero they US is borrowing at a rate of 2-3%. How does that make sense??? So the government is lending money to banks at 0% and then borrowing it back from them at 3%. Does this sound like a good idea to anyone? I know it was done to help pull the economy through this 'great recession'. But when will the madness end?

Is the US heading for Greece like problems? Are we bound to follow in the footsteps of the failed quasi-socialist governments of Europe? When will we realize that the best thing for the American People is a strong financially stable US Government?

Just wanted to rant for a second... also looking for intelligent conversion based on these talking points.