Tuesday, February 20, 2018

A Million Dollars a Minute

 From Andrew P. Napolitano, a reminder of the real risk. The heart of it is in the quote. The $30 billion he writing about is the money borrowed to finance our participation in WWI.

The $30 billion President Wilson borrowed from the Federal Reserve and others has been rolled over and over and has never been repaid. The federal government still owes the $30 billion principal, and for that it has paid more than $15 billion in interest. Who in his right mind would pay 50 percent interest on a 100-year-old debt? Only the government.
Wilson’s $30 billion debt 100 years ago has ballooned to $20.6 trillion today. At the end of President Donald Trump’s present term – because of the Republican budget signed into law last week – the government’s debt will be about $27 trillion.
That amount is a debt bomb waiting to explode. Here’s why. Every year, the federal government collects about $2.5 trillion in revenue and spends it all. It borrows another $1.5 trillion to $2 trillion and spends it all. To avoid paying back any of the $27 trillion it will owe, the federal government will need to spend about $1 trillion a year in interest payments.
That $1 trillion is 40 percent of the revenue collected by the federal government; that’s 40 cents on every dollar in tax revenue going to interest on old debts – interest payments that are legally unavoidable by taxpayers and voters.
   Here's the whole thing.

1 comment:

Mad Jack said...

My cousin on my father's side, Fat Tony Santobello, charges three for two. Think he could get any government business?