The current level of the national debt exceeds the entire debt accrued by all prior presidents up to Obama. And it's headed toward a terrorizing $20 trillion by the time Obama takes his last dump in the Oval Office potty-room in 2016.
The Fed's been printing money to buy Obama's debt still growing at a trillion buck a year clip. By printing money and buying the debt the Fed keeps the debt service interest rate at historical lows of around 2.4%.
Tanous says, 'Do the math: If we were to pay an average interest rate on our debt of 5.7% [normal level], rather than the 2.4% we pay today, in 2020 our debt service cost will be about $930 billion.' Compare that to the total tax revenues the IRS collects from we the people; $1.1 trillion. By 2020 the entire budget will be pure debt spending!
And what about the drunken money printing party? Inflation, baby. When this bubble pops the currency may well collapse or become nearly worthless. Feel better now?
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