"CBO reports that the national debt is already the highest in history except for World War II, reaching roughly 70% of GDP this year. On our current course, CBO projects the national debt held by the public will climb to 100% of GDP by 2021, equal to our entire economy. By 2023, it will break the World War II historical record of 109% of GDP. It will then continue to rocket upward to 190% of GDP by 2035, which is higher than the level suffered by Greece when it collapsed into national bankruptcy.
Bankruptcy is defined here and in my book as when the federal government can no longer borrow enough in the credit markets to finance its budget deficit, which is precisely what Greece has been suffering. President Obama’s own 2012 budget projects the federal deficit for this year at $1.645 trillion, the highest in world history by far.
Already this year, 43 cents of every dollar the federal government spends is borrowed. Spending for Social Security, Medicare, Medicaid, and the income security programs (mostly welfare), will consume 95% of all federal revenues. What is left will not even be enough to pay interest on the national debt, equal to 10% of federal revenues. All the money for everything else the federal government does, including all of national defense, law enforcement, transportation, agriculture, indeed, for everycabinet department outside of spending for the above entitlements, all will have to be borrowed"............READ MORE
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