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Those are two interdependent things. To reduce the debt, you not only have to balance the budget, you have to go further and put the budget into surplus. Only
by simonblack 3y ago
Those are two interdependent things.
To reduce the debt, you not only have to balance the budget, you have to go further and put the budget into surplus.
Only two ways to go into surplus: reduce the expenditure or increase the incomings (taxes).
Debt is the killer. Even a piddling 1% increase in the interest rate means that the Government has to find another 320 BILLION DOLLARS EVERY YEAR to service that debt.
Let's face it. 32 Trillion (and still rising) debt is impossible to come back from. The US has nowhere to go but to eventual collapse, whether this year or next year is immaterial. It's all over, red rover.
- simonblack 3y agoBoys! Boys! You can downvote this as much as you like but .... Arithmetic is arithmetic. You can't make 2 + 2 = 5! The numbers force a choice: either interest rates remain low and the dollar collapses due to inflation, or the interest must be raised enough to fight inflation (how high? I have experienced 20% interest rates during my lifetime) but the debt can't be reduced and even rises dramatically when interest rates go up by 5-6%. At a 6% increase in inflation rates, the Government would have to find 1.8 TRILLION DOLLARS EXTRA PER YEAR to service the current debt. And may I remind you that 1.8 TRILLION DOLLARS is double the current overblown Defense Budget.