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DENNIS PATRICK: THE FISCAL CLIFF |
The biggest danger, and one that is not talked about, is the national debt and the ballooning interest rates. America currently owes $16 trillion. This does not include unfunded liabilities which make the debt much, much higher. So far, we can service this debt because of low interest rates (about 2% or about $300 billion a year). In a few years the debt will reach $20 trillion. As we continue printing money and our creditors demand higher interest payments the interest rates will increase to around 5% or more and the annual interest payment will run around $1 trillion a year. Eventual insolvency is the real fiscal cliff.
Still, the voters keep re-electing the same politicians
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