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How about this chart, and it's old - 2008 - the latest I could find. It's not just the deficit which exists as a result of it, it's the unavoidable near-term acceleration of some of these expenses.
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Look at the interest amount on the debt - already sizable. That number is bound to soon be much larger. First, we are borrowing money like crazy and second, interest rates are at an all time low. When the Fed has to raise interest rates to combat the coming inflation, this number could quadruple or more over night. Right now we are paying next to nothing in interest - less than 1/2 % on short term borrowing at the Fed window. What if it goes to 5%, and it will - it has to? That's a ten-fold increase, and all other rates will adjust accordingly.
Or, what if we simply have to start paying more interest because China et al are nervous about our debt and want a higher return for the risk?
We are facing the dual whammy of having much more debt to pay interest on in a climate of rising rates which is soon to come. That doesn't even address the quaint idea of ever trying to pay anything on the principle.
What will happen to that portion of the pie?
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Next, look at Social Security and Medicare. They are really big pieces of the pie. NEXT YEAR the first of the baby boomers will turn 65, and every year after that, more and more. It's obvious what the inevitable is right there. As they retire these costs will skyrocket but tax receipts will drop as they stop producing. None of the money for social security has been saved - it's all been dumped into the general fund and spent. We aren't decades away from a crisis. It's this decade.
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The deficit is already massive, and borrowing is a line going straight up. Where is there any room for:
1. Cutting money from Medicare to help fund Obamacare? and
2. Adding any additional spending beyond that for socialized health care?
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The people in our congress and Obama are completely crazy and we're screwed. We can't recover from this.
Be realistic here please and be prepared. This is unsustainable.
------------------------
Look at the interest amount on the debt - already sizable. That number is bound to soon be much larger. First, we are borrowing money like crazy and second, interest rates are at an all time low. When the Fed has to raise interest rates to combat the coming inflation, this number could quadruple or more over night. Right now we are paying next to nothing in interest - less than 1/2 % on short term borrowing at the Fed window. What if it goes to 5%, and it will - it has to? That's a ten-fold increase, and all other rates will adjust accordingly.
Or, what if we simply have to start paying more interest because China et al are nervous about our debt and want a higher return for the risk?
We are facing the dual whammy of having much more debt to pay interest on in a climate of rising rates which is soon to come. That doesn't even address the quaint idea of ever trying to pay anything on the principle.
What will happen to that portion of the pie?
-------------------
Next, look at Social Security and Medicare. They are really big pieces of the pie. NEXT YEAR the first of the baby boomers will turn 65, and every year after that, more and more. It's obvious what the inevitable is right there. As they retire these costs will skyrocket but tax receipts will drop as they stop producing. None of the money for social security has been saved - it's all been dumped into the general fund and spent. We aren't decades away from a crisis. It's this decade.
-------------------
The deficit is already massive, and borrowing is a line going straight up. Where is there any room for:
1. Cutting money from Medicare to help fund Obamacare? and
2. Adding any additional spending beyond that for socialized health care?
-------------------
The people in our congress and Obama are completely crazy and we're screwed. We can't recover from this.
Be realistic here please and be prepared. This is unsustainable.