Quote:
Originally Posted by raymor
True, but DOUBLING the total debt in just four years may very well bring about that very collapse people have been warning about. We're on track to spend about 20% of total revenues just paying interest on the debt. As that number rises due to further borrowing, there is no money left for government services. As the CBO has warned, unemployment checks won't go out, government workers will have to be laid off, etc. as all of the revenue goes to debt service. See Greece. The ordinary voters will notice when 20% of them are laid off. Can you imagine any possible math that avoids that?
With borrowing at 20% and debt service at 10% this year, spending would have to be cut by a full 30% just to.stop making the situation worse. I can't imagine Obama cutting all government spending by at least 30%, so therefore it can only get worse until it eventually implodes.
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Things are not good for sure, but the reality is nobody, not Obama, not Romney, not Santorum will cut spending by 30%. In the past when we ramp up the debt we hope the economy rebounds and that increased cash flow helps pay it back down some. that may not happen here so there is always a chance that something very bad could happen.
That said, I almost think we are too big to fail. So many countries have so much invested in us that if they let this country collapse they would go down in flames with us so I have a feeling they will just continue to prop us up and keep things going no matter how ugly they get.