Monday, October 15, 2012
The Future of America Is Japan: Runaway Deficits, Runaway Debts
Now take a look at the 2012 United States federal budget. Net interest on the $16 trillion national debt is "only" $242 billion, while Social Security costs totaled $778 billion. So far, debt and Social Security ($1 trillion) are "only" 40% of total tax revenues, but like Japan, rapidly rising debt will increase interest while a rapidly increasing population of retirees qualifying for Social Security will drive those costs dramatically higher in the years ahead.
Given $2.47 trillion in total tax revenues, $3.8 trillion in expenditures and a deficit of $1.3 trillion, 34% of the Federal budget is borrowed money. We are borrowing 52% of total tax revenues.
Does anyone seriously think this is the "road to recovery"?If you want a look at the fiscal future of the U.S., look west to Japan, a nation that sits precariously on a fiscal cliff a thousand feet high.