The real crisis We keep hearing all the hype about what a catastrophe we will face if congress does not increase the debt ceiling with no spending cuts and also give Obama many billion dollars more money in the budget as well. Anyone with just a little knowledge of math knows Jack Lew and Obama are ignoring the real crisis is the fact that we now owe $17 Trillion dollars and Obama wants that increased to $18 Trillion for the short term. With the obvious goal of passing $20 Trillion in his current term. We cannot pay the interest on our debt now without borrowing more money to pay it. Interest rates are increasing and will continue to do so. This administration has been printing over $85 Billion dollars per month for several years now in an effort to artificially keep interest rates low. This increase in the money supply has to greatly increase inflation. At the current deficit of $17 Trillion if the rate rises to 5% and analysts it will go far above that. During Carter’s administration it went to 15%. But at 5% the interest we have to pay on the debt we already have will be $850 Billion dollars a year. That is way more than we as a nation can generate with all the other current expenses not counting the extra Trillion cost of Obamacare. The truly big crisis is we are reaching a point where we can no longer pay the interest. That is the catastrophe that we are facing. Yet he does not want to even discuss cutting spending. Obama himself said it best when he was a senator and voted to not raise the debt ceiling to $8 Trillion dollars. “It is irresponsible and shows a complete lack of leadership for the president to ask to increase the debt ceiling” Barrack Obama in a speech on not raising the debt ceiling. John Walker
Posted on: Tue, 08 Oct 2013 00:24:10 +0000
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