We’re $16,000,000,000,000 in debt. Don’t think it matters? Consider this: who owns the debt, and what is going to happen when they collect? How are government programs going to remain funded when interest payments on the debt begins to siphon off those funds into coffers of the bondholders? Ask yourself this question again after you’ve contemplated the return to the historical average interest rate and not the artificial rate we’ve been basking in. “...from 1971 until 2012, the United States Interest Rate averaged 6.2 Percent…”, but we’ve been enjoying rates less than 3% for what seems like five years. The government borrows 40% of every dollar it spends in your name. Imagine how great the interest payments will be on that borrowed money when we return to the historical average? Think the interest rates will remain this low?
Permanence is fleeting.