blog.milesfranklin.com / By David Schectman / December 5th, 2012
Things are out of control and beyond fixing. That’s not being negative, it’s being honest and realistic. Why so?
Soon we won’t be able to pay the INTEREST on our National Debt.
We have been spending more than one trillion each year than we collect in taxes and have been doing so for years
The government borrows $0.43 of EACH DOLLAR they spend. This can’t continue.
Our tax revenues are $2.3 trillion. Our entitlement expenditures and interest on the debt total $2.4 trillion. We don’t have enough left to run the country or support the military. The interest is compounding. For every one percent increase in the interest rate, it increases our National Debt by $160. The Fed IS stuck with QE to Infinity. They cannot allow interest rates to rise and are therefore buying most of the government’s bonds with newly printed money. We use the Fed to print the money to finance our life style but it will ultimately destroy our once great nation.
All of this printing is causing massive dollar de-valuation. Prices are not rising, the dollar is losing value due to wanton Federal Reserve money creation. All of this “free money” the government borrows will never be paid back. We keep borrowing more money just to pay the interest on the debt.