Unless our country comes to grips with the actual "cost" of twenty trillion dollars of debt, the party is about to be over. Our debt ratio is approaching Greece's.
There used to be a tradeoff for having a government job, lower wage but high job security. Now the government jobs pay more than equivalent free market jobs, and welfare is being provided for non-citizens.
The reason the US dollar is worth a dollar that it is a benchmark for the value of foreign crude oil (petrodollars) which is sold around the world. There are many reasons that the trend is to switch to Chinese, Euro, or even Russian currency. Without the oil support, the US dollar will crash in value, interest rates will skyrocket, and personal savings accounts will lose major value.
When real interest rates rise to, say ten percent, see how much interest the US will pay on 20 trillion. It's two trillion a year.
The budget pie!
Now take two trillion and see where it fits in the pie above.
Additional facts: Debt is expected to reach 24 trillion before anything can be done to stop it. Hillery wants to grow it.
Now see where ten percent falls in debt ridden countries.
Edited by
metalwing
on Wed 03/23/16 02:05 AM