Peter Schiff sends a clear warning based on facts and reasonable
assumptions:
On the current trajectory,
the national debt likely will hit $20 trillion in a few years. If, by that
time, interest rates were to return to 5 percent (a low rate by postwar
standards) interest payments on the debt could run around $1 trillion per year.
Such a sum would represent almost 40 percent of total current federal revenues
and likely would constitute the single largest line item in the federal budget.
A balance sheet so constructed would create an immediate fiscal crisis in the
United States.
The depression that will follow will not be called “The Greatest
Depression,” it will be called “The End of America.”
Dean Kalahar
The elimination of the Bush tax cuts would slow down that increase in the national debt. It is a major reason the debt has been growing so much.
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