As an aside from the debate in Washington about whether or not to raise the debt ceiling, spend less, or balance the budget, there is something else just as ominous to the country and future generations that you should know about.
We all understand that borrowing money has a direct cost to it, the interest rate. Interest rates now are at all-time lows. No problem. When interest rates go back up, big problem.
This video demonstrates the effect of what higher interest rates will have on the economy and yet unborn Americans.
Short version, instead of owing over $1 trillion a year in interest payments now, we could be looking at $2.6 trillion per year by 2021. Or to put it another way, it amounts to more than half of what the government gets in taxes per year.
Meanwhile, Nancy Pelosi and The White House call the GOP’s plan (remember, Democrats don’t have a plan) extreme. Who knew that balancing the budget, reducing spending and trimming the size of government to a sustainable level would be characterized as extreme?