The plan that will be approved by the Senate today and signed by the President projects debt growth of $7 trillion over the next 10 years, or a 50% increase in our debt.
That’s the bad news. The worse news is this.
That’s based on the rosy economic projections of +3% GDP annually, and interest rates holding the line where they are.
Each .1% on annual GDP works out to be about $50-$100 billion on our government’s balance sheet. So, what happens if we only get to +2.5 GDP annually over the next ten years? That would add about $3-$5 trillion in debt. If interest rates go up a couple points, that could also add $2-$3 trillion in interest payments. Or more.
So, that $7 trillion in debt increase over the next ten years could easily double. We owe $14 trillion now, and could owe another $14 trillion in 2021.
How’s that make you feel?
You understand all my posts from the last couple months saying that we may already be at the tipping point now?
It is no exaggeration to say that the 2012 election is the most important election of my lifetime. Not just for the White House, but the House and Senate as well. The Democrats are trying to destroy America and the American dream. I’ll give them the benefit of the doubt (that they probably don’t deserve) and say that they’re not doing it deliberately, but their policies certainly will. There is now no doubt on that matter.
Math trumps politics.
I keep saying that and I will continue to say it until November 2012, and probably beyond.