The latest informational video from Bankrupting America quantifies just how bad our debt situation is. As of 2011, our gross national debt is $14 trillion dollars, and by 2020, that number is set to balloon to $25 trillion. And, that’s not even counting all of the entitlement commitments over the next 25 or so years, which some have estimated to exceed $200 trillion.
From Bankrupting America:
It’s about to get much worse. With debt comes interest – an added fee for borrowing that money.
This year we’ll pay $200 billion in interest on the debt. In just three short years we’ll pay double ($400 billion a year by 2014). In nine, quadruple ($800 billion a year by 2020). And by the time singing sensation Justin Bieber is old enough to rent a car we’ll pay almost $1 trillion on interest payments a year.
One trillion is equal to spending a dollar every second for 32,000 years, except Washington is spending it all in one.
Currently, we take in around $2.5 trillion in tax revenue. By 2020, tax revenues are projected to be roughly $4.6 trillion. According to a recent overview from the Congressional Budget Office (CBO), “CBO projects that the government’s annual spending on net interest will more than triple between 2010 and 2020 in nominal terms.”
If the government were an individual, it would have declared bankruptcy or been imprisoned for fraud a long time ago.
At some point, the government is not going to have enough tax revenue to cover our yearly spending outlays and interest payments. Strike that last statement – we’ve already reached that point.
We are literally, right now, having to borrow money just to pay off previously borrowed money because we spend too much and simply don’t generate enough from taxes.
The word that comes to mind is: unsustainable.
Our view is that our creditors will stop lending to the world’s largest dead beat debtor well before 2020.