10% Interest Rates SOON!!!!!
Right now our governmnet is running an ANNUAL deficit of $2 Trillion dollars. China's total holdings of US Treasuries is only $800 million...plus another $800 million of US demoninated assets.
Our current annual entitlement expenses are $2 Trillion dollars and growing rapidly due to rising unemployment and an aging population.
At this point, since our nation has no savings...we NOW need to borrow $2 Trillion dollars per year against a backdrop of a SHRINKING income.......the income to the higher earners in America is evaporating and they were responsible for over 90% of the tax receipts.....now tax receipts are only trickling into government.
With potential lenders knowing we can simply Quantitatively Ease, or "print money".....at what rate of interest do you think they will demand to loan money to a nation with a shrinking economy and a money supply increasing almost 20% ANNUALLY!!!!!!!
That is right....10% interest will simply be the beginning....then 20%...then 30%....until the system collapses......
If we don't restructure debt SOON....we simply will be unable to find anyone to lend us money at an acceptable rate....and as the rates go up....the cost of servicing the debt will go up...forcing more defaults and even higher rates........