Quote:
Originally Posted by greazzer
What happens when the interest on those debts jumps to around 3.7% ? Almost every penny we rake in will need to go to interest payments. That of course ASSUMES we will not spend one more cent on any government spending. It all goes to interest payments.
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The offered link shows this to be a near certainty. As the world realizes that it is not worth maintaining the dollar as the world's trading currency, there is no reason for the Chinese to keep investing in dollars for a very small return.
Accordingly, the Government will have to pay more interest when that happens.