This will translate the Obama administration’s spending into simpler terms for the average taxpayer.
About 40% of the income tax now goes to pay just the interest on government debt. I am not talking about the debt’s principal amount; I am just referring to interest cost which is dirt cheap at the moment.
During the Jimmie Carter administration, interest rates were almost five times greater than now. With the outstanding debt expected to grow by at least $9 trillion in ten years, future total interest costs can grow to unknown extremes.
It will be impossible to easily pay the interest, least of all the principal, without dire consequences.
This will be absolutely impossible without tremendously inflating the currency. That is, adding paper to the money supply to cheapen it.
That will make the real debt less, and what the citizens own worthless.
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