US GDP is roughly $15 trillion per year, with two percent growth (in a healthy economy). Our current deficit is $16 trillion. In JUST the last five years, the federal government has added, on average, about $1.3 trillion per year in new debt, a pace that is four times higher than our GDP growth. I remember the whole time I was growing up, the excuse from economists to convince us that our debt was fine was always that our GDP was bigger than our debt, and we therefore, were safe. This is no longer the case... And within a very short time, at our current pace, we will be unable to service our debt, no matter what congress does. The incredibly reckless spending by our government is TRAIN WRECK that cant sustain itself for more than a few more years, at VERY BEST, before we become another Greece, and we bring down the entire world financial system along with us. Those who think that defaulting on our debt is a worst-case scenario, and instead, we should opt to keep spending, clearly dont understand what worst case scenario actually means.
Posted on: Fri, 18 Oct 2013 10:53:07 +0000
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