Debt disaster dead ahead

If, for example, Washington had to pay the same rate as, say, Australia, it would be shelling out an additional billion dollars in interest. Every day.

Consider this: if everything goes according to plan, in 2020 we will be spending “only” $916 billion on interest. But if, as Moody’s is warning, the United States were to lose its AAA rating, rates would rise and payments could double…

By creating a new spending entitlement when Medicare is facing $38 trillion in unfunded liabilities, it is not a stretch to say the U.S. is nearing a precipice that has no precedent.

And not unlike going over a cliff, once the U.S. does it, other forces come into play, making it nearly impossible to reverse the fall.