OK - I just bitched about the astonishing February deficit of $220.9 Billion. Here are more disturbing numbers:
Feb. Entitlements: $164 Billion
Feb. Expenditures: $328 Billion
Feb. Revenue: $107 Billion
Entitlements are half of expenditures, and boomers haven't even retired yet.
Subtract entitlements, and they still can't pay for the rest.
One wonders how this house of cards could still be standing. This brings us to interest rates, which remain artificially low to prop things up. Typically, the more a borrower owes, the greater the risk of lending to him. Higher risk means higher interest rates. Of course, with the cozy owner/slave relationship between the Fed and the US Government, that rule has been suspended and interest on government debt figures minimally in the equation.
Or does it?
You see, high interest rates are just one way to collect. There's another - namely inflation. If you're a central banker, you can simply print the interest, thereby taking it from the people in a way that they can't even understand, much less fight. But the interest will be paid!
So, look for published interest rates to stay low ("facade maintenance") while the cost of living soars. Not the government figure either - the real one that includes fuel and food.
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