Government Debt and Your Pocketbook

This will bring the Obama administration’s spending under a better light for the average taxpayer to appreciate.

This year, about 40% of the income tax goes to pay just the interest on government debt. We are not talking about the debt principal itself; we are just keeping up with the interest which is dirt cheap at the moment.

During the Jimmie Carter administration those rates were almost five times greater than now. In addition, the debt is expected to grow by at least $9 trillion in ten years.

It will be impossible to pay the interest, least of all the principal, especially with expected higher interest rates.

This will be absolutely impossible without tremendously inflating the currency. That is, add paper to the money supply to cheapen it.

That will make the real debt less, and what the citizens own worthless.