Did some number crunching:
If interest on US debt is as high as Spain's 6%, the US will be spending $1 trillion per year in paying interest alone, almost half of their tax revenue receipts. That will bring their annual spending close to $4.5 trillion, and annual deficit close to $2.5 trillion. Mind boggling
Will the interest rate go to 6%? It's just a matter of time before confidence in paper money runs out. Paul Volcker had to raise rates to 20% in June 1981 to SAVE the USD (because they also printed a lot of money prior to 1980), and back then US were on a much sounder economic footing.
At 20% rate, US interest on debt will be $3.1 trillion, almost the entire government budget!
When I say government budget I mean their proposed expenses (yes, deficit-spending rocks....not) ... $3.1 trillion would be 1.4x of government's tax revenue.)
The collapse is inevitable. And what are the politicians say when the US finally gets into trouble? "It's the Europeans' fault and the Chinese's fault."
If interest on US debt is as high as Spain's 6%, the US will be spending $1 trillion per year in paying interest alone, almost half of their tax revenue receipts. That will bring their annual spending close to $4.5 trillion, and annual deficit close to $2.5 trillion. Mind boggling
Will the interest rate go to 6%? It's just a matter of time before confidence in paper money runs out. Paul Volcker had to raise rates to 20% in June 1981 to SAVE the USD (because they also printed a lot of money prior to 1980), and back then US were on a much sounder economic footing.
At 20% rate, US interest on debt will be $3.1 trillion, almost the entire government budget!
When I say government budget I mean their proposed expenses (yes, deficit-spending rocks....not) ... $3.1 trillion would be 1.4x of government's tax revenue.)
The collapse is inevitable. And what are the politicians say when the US finally gets into trouble? "It's the Europeans' fault and the Chinese's fault."
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