ends now or collapses from a higher level. Either case will bring what remains of the real economy to a terrible end.
What could be more simple than the mechanics of a compound (exponential function) debt growth curve? It grows at a fixed rate, but as time passes the absolute amount added increases for each unit of time. This acceleration approaches too close to infinity, and the growth collapses. All compound growth curves are inherently unstable and ultimately collapse, without exception.
This means that the debt will at some point come to a screeching halt. Since it is impossible to pay, the failure to grow (failure to be able to borrow to pay the interest and failure to be able to refinance) means default. Included in the federal government debts are Social Security, Medicare, Medicaid, government employee pensions, and the bonded debts. Default is certain; what is not certain is the time it cannot be refinanced by some method. Another certainty is that neither Congress nor the President will rationally decide to end its growth; it will be market forces that end it.
The bonded debt of the federal government beginning with yearly data from 1900 forward matches a growth curve of 8.3% compounded annually. This curve will take the present ~$16 trillion in debt up to ~$32 trillion in 2021, just 8+ years in the future. This is not an opinion. This is a mathematical function; a continuation of a force in motion. This does not include the growth in the unfunded social security, medicare, and government employee retirement benefits which currently are 7 to 8 times larger than the bonded debt. Yet between now and 2021 economic growth in all probability will be stagnant or even negative, simply because the energy we use to fuel the economy is becoming so costly that it is choking economic expansion. Imagine yourself maxed out with debt, your income not growing or falling, and your debts doubling over the next 8 years.
The USSR did not survive its debt collapse in the 1990's and the ugly consequences was that millions of people dependent on it for survival quietly died. The Western press ignored that tragedy, but they won't be able to ignore the same thing here at home.
"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.
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