[snowsislander]

How will Congress replace the lost revenue? Borrowing more money through Treasury Bonds. The additional borrowing will increase the national debt, which means that we will have to pay more to service the debt annually.

Also, as interest rates rise, we will have to pay more as we create new debt and rollover old debt. It could get quite expensive since interest rates are at quite a low spot right now.

[kabar]

Exactly. The impact on our economy will be devastating should inflation and increased interest rates kick in.

[ran15]

If kabar is right that already 17 cents on every dollar is spent on interest, then its even more painful then I thought. Interest rates only have one place to go.. up. And especially if we don't look like a great investment to the Asian creditors, they are going to want a higher rate of return.

I can see if the nation was in real jeopardy of being destroyed by a hostile power.. borrowing from foreigners as a last ditch effort. But to finance an entitlement program seems suicidal.