To The Editor:
Inside the U.S. Treasury Department is a division known as the Office of Debt Management.
This “office” is currently illustrating with known data that our government is only about five years away from the point where literally every borrowed dollar will have to be allotted to debt management.
Now certain things can happen where this “point” can be somewhat delayed, such as a drop in public debt interest rates, but with the past and present rates of borrowing, it is very unlikely to be forestalled for any appreciable length of time.
Once our government reaches this “point,” defined as the Debt Death Spiral, it will have only a few choices remaining:
1. Print a lot more money.
2. Slash spending.
3. Declare insolvency (bankruptcy).
None of these choices will be any good for Americans in general.
Oh, by the way, “taxing the rich” will produce nothing in the way of solution to this problem. Even if every penny was confiscated from the top 5% the “spiral” would continue.
Our government is now in even worse shape than in 2008, when we bailed out businesses left and right with borrowed money.
Household debt across the country is zooming to new heights.
At this juncture, I don’t want to sound like an economic defeatist, but if we as a country continue to condone government spending at this alarming rate, we will be heading for uncharted financial seas.