The USG maxed out on their credit card at $6.4 trillion. So what do they do? Cut back on expenditures? Nooo… of course not. They just simply increase their own limit. They added another $984 billion on May 27 to their credit to satisfy their addiction to their out of control spending. As it stands now, each person in the US would have to pay $22,545.92 to service the debt. Sometime, the taxpayers will have to come up with the money to pay for the debt, which is basically impossible, unless the USG decides to hyperinflate. About the only other option is for the USG to declare bankruptcy, which might have some negative repersussions politically, economically, and socially. It’s like the US is headed toward the edge of a cliff and instead of turning around and going a different direction, they simply build a ledge to delay dropping off into the abyss.
Links:
Bush Quietly Raises Debt Limit
National Debt Clock
The Federal Debt Spiral – Ron Paul