Greetings. We all know that the financial situation of the US is a complete disaster, so I'll just get right to the point. With all the focus on the
current government shutdown and the budget fights over Obamacare, here's my take on a point that is often lost in the shuffle:
The current interest rate that the US Treasury pays on the national debt (almost $17 trillion right now
approximately 2.4 percent. That means servicing the debt (paying interest to a private entity for money that does not exist) costs around $410
billion a year.
The reason that servicing the debt is manageable right now is that the Fed has artificially pushed interest rates low through QE.
Historically, this interest rate has averaged out to be around 5.7 percent. The national debt has risen to ridiculous levels during a period of time
where the artificially low interest rate of 2.4 percent has facilitated a financial environment for this absurd debacle to continue.
If the interest rate were to rise back to 6.0 percent, servicing the debt now costs 1 TRILLION dollars
per year... that's just to pay the
The total amount collected by the government for personal income taxes in 2012 was 1.1 trillion dollars. This means that if interest rates were to
rise up, almost all of the tax dollars will be used up just to pay the interest on our debt
Eventually, and sooner than you think, the national debt will surpass an amount that can be serviced. Inevitably, the dollar must collapse
believe I will see this financial collapse within my lifetime if I am careful not to cross the street in front of a donut truck.
In my opinion, the Federal Reserve system represents the greatest crime perpetrated in the history of mankind. And as for banking in general, the
ultimate racket is to get the entire world to pay you interest on something that does not exist, and they have achieved just that.
Here's a great article: The Fed's 'hidden agenda' behind money-printing
The article ends as follows:
And if Americans find out that the lion's share of their income tax payments are going to service the debt, prepare for a new American
Yeah, right... to revolt, one must get up off the couch.