Replies

To: Ghost of Philip Marlowe

“The service on our debt is fast approaching 100% of GDP. No nation has survived that.”

I know we’re not in great shape, but that statement is preposterous.

Our GDP is nearly 15 trillions. The federal debt service is about $450 billion - that’s 1/30th of the GDP.

5 posted on 04/07/2011 12:19:29 AM PDT by aquila48

To: aquila48

"that’s 1/30th of the GDP"

It's nothing that 10% inflation for 5 years won't fix. I can stay in front of that.

yitbos

6 posted on 04/07/2011 12:59:35 AM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)

To: aquila48

The federal debt service is about $450 billion - that’s 1/30th of the GDP

At current interest levels that's true.

But when the USD loses reserve status the Fed will need to pay at least 6% interest: maybe more.

7 posted on 04/07/2011 2:16:36 AM PDT by agere_contra (As often as I look upon the cross, so often will I forgive with all my heart.)

To: aquila48

The deficit. Relax.

8 posted on 04/07/2011 7:45:49 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)

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