Must see chart shows how U.S. debt service bill is going to skyrocket

By David Galland in Casey’s Daily Dispatch:
... The U.S. and most of the world’s major economies are flat broke. Bankrupt, actually. Forget the whole debt vs. GDP metric… Focus instead on debt + obligations vs. GDP, as that's where the scale of the problem – and the scope of the coming pain – is most apparent.
We are literally tens of trillions of dollars underwater. To return to fiscal solvency is now impossible without overt default, or the covert default of a serious inflation.

... The debt problems are now so extreme that the Republicans, Tea Partiers, and desperate Democrats now rediscovering good old fiscal sanity have no feasible way of making a dent. Even the stingiest Republicans are only talking about freezing spending at 2008 levels. For the record, that still means an annual federal budget deficit of just shy of half a trillion dollars.
Add to that approximately $150 billion in annual state budget shortfalls. And that’s before the economy is knocked sideways by the onrushing tidal wave of retiring baby boomers… or body slammed by the inevitable increase in U.S. interest rate expenses, as rates move up sharply from today's unsustainable historic lows.
The point is that, even to get back to 2008's budget deficits, will require cutting almost a trillion dollars in federal spending. And that's just for starters. Talk about a pain party.
... On surveying the political landscape, do you think that Republicans, Democrats, or even Tea Partiers will raise their hand in favor of slashing social security to the extent necessary to advert the coming currency crisis? How about Medicare? The military?
Crux Note: Each day in Casey's Daily Dispatch, David Galland brings you an informative and entertaining overview of the markets, the economy, and politics... all from his unique and often contrarian perspective. Casey's Daily Dispatch is absolutely FREE and comes right to your inbox, five times a week. To sign up, click here.
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