The Treasury Department was forced under so-called “extraordinary measures” to borrow $400 billion beginning in May, in anticipation of an agreement between Congress and Obama.
“Usually Congress sets a borrowing limit, or debt ceiling, that caps the total amount the government can be in the red,” according to the report. “But under the terms of this week's deal, Congress set a deadline instead of a dollar cap. That means debt will rise by as much as the government spends between now and the Feb. 7 deadline.”
If the rate of spending continues as it has over the last five months, US debt may eventually by as much as $700 billion before it must apply for another increase to the debt ceiling... "
So as of now, US remains the largest debtor in the history of the world. How much would it cost per year just to pay the interest of the debt? Can this go on without any dire consequence? What do you say?
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