| | | In 1946 the national debt was around $3 Trillion in today's dollars.
Today, of course, we're closer to 18 Trillion in actual debt. But then there is off-book indebtedness, obligations, totaling about 100 Trillion -- none of which existed in 1946. These are obligations that will either have to be met (which is an impossibility) or we will see a dramatic reduction in our standards of living (a virtual certainty, since there is not another option).
Interest rates can and do go up, and in fact will. While bond coupon rates don't change, effective yields do, and when yields drop the desirability of owning the debt drops, which means that coupon rates on new debt will be driven up. And that new debt is what is required to fund the increased deficits coming from Obamacare, SS, Medicare and, of course, interest on the debt. |
|
