Heavy Government Debt Spells Disaster

You can be sure that government debt will spell disaster for taxpayers; even for citizens who don’t pay taxes but who worry about the cost of living.

The extravagance of government spending can easily be borrowed away. That debt of today is being financed at very low, abnormally low, interest cost. Those costs will easily double and triple. Perhaps go higher. Long term rates can conceivably reach 18% or so from under 4%.

So we are looking at astronomical debt, with poor prospects of an economy expanding in that atmosphere, where it can accommodate that debt.

The public will eventually see that today’s spending is only a down payment on future costs, to be paid by heavy taxes and a more worthless dollar. Yes, if taxes don’t foot the bill, a worthless, inflated dollar will.