On the very next page I saw an excerpt from a past Forbes Opinion column, an article I had not seen before. Here's a bit of it:
No one knows the point at which debt becomes unsustainable. According to an IMF report, the critical point is when a government is borrowing just to pay interest on the debt. According to the CBO, we will reach that point in 2019 when the federal government is expected to borrow $722 billion and its net interest expense will also be $722 billion.
Unfortunately, the debt will continue to rise past that point because entitlement programs such as Social Security and Medicare will be growing sharply as the population continues to age and more people qualify for such programs.
I'm interpreting this as a sign that I need to continue learning about ex-pat life and how one goes about it. To paraphrase the words of one friend of mine, "I will already be off the boat before the U.S. hits the socialist iceberg."
4 comments:
As if it will take that long to get to $722b. I think those are generous numbers.
Yeah, that's a good point. If we can't convince foreigners to continue buying our debt, we'll have to offer higher interest rates to entice them.
Did you check out the rest of that article? It actually discusses the pro's and con's of repudiating the debt.
I don't have time to read the entire article. I'm too busy investing in cases of Spam and Spaghetti-Os.
You should finance your spam and Spaghetti-Os so you can pay off the loans with increasingly worthless dollars!
Post a Comment