HERE IS THE PUNCH LINE: "With significantly lower revenues and higher outlays, debt would reach 87 percent of GDP by 2020, CBO projects. After that, the growing imbalance between revenues and noninterest spending, combined with spiraling interest payments, would swiftly push debt to unsustainable levels. Debt as a share of GDP would exceed its historical peak of 109 percent by 2025 and would reach 185 percent in 2035." WHAT THIS REALLY MEANS: We either slash expenses and increase the rate of growth NOW (because higher taxation is simply going to kill the middle class and small businesses) OR - we will experience an economic disaster that will dwarf the Great Depression. Imagine the entire United States as the city of Detroit - and all government checks and payments have been stopped for two months. At that point, we will be wishing and praying that we were experiencing only a depression - and not the death of the American economy.
Posted on: Mon, 23 Sep 2013 16:36:22 +0000
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