Sometimes we must consider the unthinkable.
Official US national debt is $21.6 trillion. Unfunded liabilities are five to ten times higher. Global debt is about $250 trillion. US national debt has doubled every eight to nine years for decades.
- National debt in 2018 – $21.6 trillion
- National debt in 2026? – $40+ trillion
- National debt in 2040? – $100+ trillion
- How much will prices rise when the dollar is devalued by an additional $80 trillion in new US government debt plus more private debt?
- What interest rate will be needed to sell that debt? 5%, 10%, 15% or higher?
- Annual interest payments on current debt run about $500 billion. Both rates and debt are rising. One $ trillion per year in interest payments is coming soon. Six percent interest on $40 trillion requires $2.4 trillion per year, a large smoking hole in the federal budget!
- The government can never pay the debt with dollars of current value. Soon the interest will be difficult to pay.