Saturday, December 13, 2014

Debt can't be paid off - Zerohedge.

There is this article on Zerohedge about the possibility of paying off the National Debt:


http://www.zerohedge.com/news/2014-12-12/paying-down-debt-now-almost-mathematically-impossible


The conclusion is not encouraging. We have already passed the point where it was possible to pay off the debt. As the debt continues to grow, the next milestone is when we can no longer pay the interest due on the debt. When will that occur?


There are several factors. 1. the rate of economic growth. This is not going to rescue us, because America's leadership is bent on a reduced growth policy. 2. reducing govt spending and balancing the budget. Not going to happen, because any attempt is greeted by hysterics from the Liberal Media. 3. Finally, we can print more money and increase inflation. This will bring on other problems. The US Dollar is used as a reserve currency. This is increasingly challenged by China. If the Dollar loses its status, then it will be dumped and its value will be reduced. It might even disappear.


There seems to be no way out. 

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