I can’t see any possible way that the nation's $21 trillion in debt will not destroy our country in the near future.
The federal government takes in about $4 trillion dollars a year in taxes, then we immediately pay out about a half-trillion dollars for interest on the debt. We have constantly spent more than we take in to run the government so we are constantly borrowing money to pay our bills.
Obviously we have no money to pay down the debt. What are the possible solutions for our problem?
We can print money, making the dollar worth less and use that paper money to pay our debtors. This creates runaway inflation and results in bad relations with our former debtors, as well as making our money worthless.
We could default on the loans. This will destroy our relations with the rest of the world. We cannot meet our present obligations without borrowing money, so who will then lend us money knowing that we will default on the loan?
We could balance the budget and prepare for riots in the streets as the government defaults on contracts and pensions and other free stuff that the people have gotten used to receiving.
But balancing the budget will only stop the borrowing, so what about the debt? The Federal government would have to increase taxes by 15 percent in order to pay off the $500 billion annually, or 30 percent to reduce the debt by $1 trillion a year.
I am not a mathematician or have a degree in finance, but I can add four and four and get eight. If there is a better solution than these three, I would love to hear it.
I would then be able to sleep nights.