At some point, 100% of our taxes go to paying the INTEREST on the debt. Our creditors require higher and higher interest rates to induce them to purchase our very risky debt. You get into a death spiral where you cannot raise rates high enough to incentivize the needed investment in the USA.
It WILL implode. It is not sustainable. We are getting close.
It’s ironic because these people bandy “sustainable” around at every opportunity.
At some point, 100% of our taxes go to paying the INTEREST on the debt.
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But the Fed. Government can can also borrow from the Federal Reserve Bank to pay interest on the debt too. The Fed has never said “no”, and no Fed Chairman would ever be appointed who would say “no”. These contingents have been planned for and taken care of long ago. That affectively means the government only has to worry about inflation. One could add that they also have to worry about devaluing the dollar to the extent that no one would want it, but we are still light years from that scenario. When you have an internationally valued currency, that gives your government a lot of wiggle room to abuse its value. That’s why no one in either party seriously loses sleep at night when they pass huge spending bills over and over again.