Tuesday, September 4, 2012

Get ready for poverty

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.”

Read more: SCHIFF: The real fiscal cliff - Washington Times 

Dean Kalahar

1 comment:

  1. 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.