Status: Occurring
Prediction: “Annual Interest payments alone, threaten to eat us alive.”
Econovation, 2011
What Happened
America’s debt crisis is coming — interest payments will hit a trillion dollars a year, Mar 2018
interest is by far the fastest growing part of the budget.
In our latest nonpartisan analysis, we found that interest payments will quadruple, topping $1 trillion per year in as little as a decade. That’s more than we will spend each year on the military or Medicaid, and as a share of the economy, it is the highest in history.
What’s Next?
We keep this up, lenders will demand higher rates for our riskier bonds. That could trigger a debt crisis, hyperinflation, and a recession/depression.
History is littered with economic collapses. We have the power not to become one of them, but our current leaders and political parties are not fit for the task.