Posted on 03/10/2021 8:34:21 AM PST by RandFan
Democrats (and many Republicans) don’t seem to care about the mountain of debt Congress added last year and continues to add this year. Instead of simply opening the economy back up as the virus wanes, Democrats are plowing ahead with another $2 trillion in deficit spending.
The Congressional Budget Office, a non-partisan agency, warns that this mountain of debt will explode interest payments, such that over the next 30 years, taxpayers will have to pony up $61 trillion in interest. (Interest payments, by the way, don’t buy you government services. Interest payments just eat up cash and crowd out other government expenditures.)
By 2050, interest payments will consume nearly half of the entire budget!
The latest CBO report doesn’t pull any punches, the rapid expansion of the debt will "increase the risk of fiscal crisis – that is, a situation in which investors lose confidence in the U.S. government’s ability to service and repay its debt, causing interest rates to increase abruptly, inflation to spiral upward..."
CBO further warns that this mountain of debt could cause the world to replace the dollar as the reserve currency.
By 2050, the CBO estimates that our national debt will equal 202% of our gross national product. For years, fiscal conservatives, like myself have warned of the danger of having the national debt exceed 100% of the GDP but the CBO points out we are hurtling toward a time when our debt will be twice the size of the economy.............
(Excerpt) Read more at foxnews.com ...
Fire up the Printing Presses, we all gonna be rich. Maybe we should add a couple Zeroes to our currency to hurry us along on our road to prosperity
comparing debt to GDP may be the benchmark for comparison to other countries but the benchmark with real meaning is debt to tax revenue, ie the ability to repay.
debt to tax revenue is 700%.
Plus we are paying historically low interest rates, 2% or less(?). The historical avg rate is 5%.
That is the average which means if inflation shows up, it will be more.
Interest could eat the majority of tax revenue if we have inflation.
So borrow/spend money like crazy to start inflation and drive up interest rates.
Eh. They have all given up any pretense.
They are driving that Thelma and Louise economic car full throttle towards the precipice, and not even looking back.
Pray for our country.
The printing presses will be silenced. All part of the plan to get rid of paper money, coin and freedom.
the CBO is not a non-partisan office.
The key will be inflation.
Revenues will be inflated to pay down debt on the books prior to the inflation. If the current debt incurred at 0% interest is used to pay off the old debt incurred at 5% then the new debt to be paid in inflated $$$ the problem is not really as serious and noted.
New York and California are among America’s worst enemies. The current Covid bill takes money from some states and pays it to them. The Covid funding is retribution for the tax reduction that made state income tax non deductible
All part of the plan to get rid of paper money, coin and freedom.
The debt will still be owed, paper and coin or not. Agree freedom will be lost. How do we change course?
Abandoning ship is a viable, honorable course of action. Only the captain has to go down with the ship. I’m not the captain.
But where and what financial instruments to move towards?
What happened to all the moaning and whining, asking “how are we going to pay for this“ by the Democrats whenever Republicans wanted to have a money for something such as the wall on our southern border?
Cuts both ways, doesn’t it?
You’ll only find one or two who complain no matter who is in charge. Hint: one of them wrote this article!
Note, the bill is backed by gold!
“How do we change course?”
Pay the 28% tax on your IRA/401K, pay the 10% if you are under 59 1/2 and find a place in this world where you can live the life you want, without government interference.
Debt /tax revenue!!!! Exactly what needs to be considered I have thought this for a few years and am dismayed that nearly everyone looks at debt / gdp
“interest rates”
Lenders might insert a purchase clause in mortgages and other loans:
The lender shall have the the right to buy the secured property at a price equal to the 1.1*(amount lent+$x)*(($1+compounded interest on said dollar)/$1) at the time it is to be otherwise sold and the loan is scheduled to be in effect or anytime after five years after loan issuance, where $x represents the borrower’s equity in the property.
The US government has nearly a $30 trillion interest in screwing lenders. Lenders need to protect themselves.
The Chinese government is very concerned about US fiscal mismanagement.
The Chinese government and its citizens now have no significant secure means of investing the flood of US dollars used to buy Chinese products.
The Chinese might close the dollar window at the Bank of China. If they do so, Wal-Mart and Amazon will have little to sell.
There’s also the possibility that the Chinese government could nationalize US assets in China at 2021 values and pay the asset “owners” in US government bonds.
The US government will be at about $90,000 in debt per citizen after Biden signs the so-called Covid relief bill into law.
We have many citizens that are too young to work, too old to work, too disabled to work, too disinclined to work, etc.
Therefore, the US government will be at about $220,000 in debt per US citizen worker after Biden signs the so-called Covid relief bill into law.
So at some point, this amount of money needs to be accepted as "Pre Bankruptcy", or some clever political name. All we need is a plan to stop accepting responsibility for repayment or payment of interest, and start over. One alternative is to disband the USA, and start a new government, leaving the debt holders holding the bag.
After all, it's been over 60 years since the "National Debt" has decreased from one fiscal year to the next. There's no reason to think this will ever get better.
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