Tuesday, March 22, 2016

A US Government Debt Crisis Is Ineluctable!

I placed this comment on a finance website earlier today:

  • US Government debt is growing more than 2 times faster than GDP.  Q4 2015 GDP = 1.2%, debt growth this year is 2.6%.
  • Interest alone on the debt is $.5 trillion this year! And that's with central bank interest rate suppression!
  • The US CBO says that by the end of the next president's first term, the US will begin to incur $1 trillion debt per year -- indefinitely.
  • If interest rates on the 2-yr bond return to just 2% per year, the interest will consume virtually ALL US government revenue just to pay the interest on the national debt.
  • There are now more recipients of government assistance, than there are taxpayers paying for those benefits! And it's not even close!
A debt crisis is coming. Calamity is certainty! Plan and prepare accordingly! When it happens, all US government programs will come to a sudden end.