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A fairly small dose of fiscal reality

September 9, 2014

http://charleshughsmith.blogspot.com/2014/07/why-were-doomed-interest-and-debt.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+google%2FRzFQ+%28oftwominds%29

I’m not sure where I first heard about this guy’s blog, but I think he’s got a lot of really interesting take on the economy, debt and other stuff.  This article of his was a real kick in the pants.

Here’s a sample of this post.

That means we’re eating over $2 trillion every year of our real wealth, i.e. our seed corn, to support an ever-increasing mountain of debt. That is not sustainable. Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt.
This leaves the entire Status Quo increasingly vulnerable to any sort of credit shock; either rising rates or a decline in the rate of debt expansion will cause the system to implode.

One of the things I like about the blog is that he’s got lots of cool graphs to illustrate the points he makes.  I will warn you though, reading this blog will give you a bleak outlook on our nation’s financial state.  I guess the upside is that, to some extent, fore-warned is forearmed.

 

 

 

 

 

 

 

 

 

 

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