Coalition to Reduce Spending advisory board member and nationally syndicated radio host Peter Schiff wrote an op-ed in the Washington Times this week that is not to be missed.
Amid all the talk of the looming “fiscal cliff” of tax increases and spending cuts (at least that’s what the mainstream media says), Schiff writes the real danger arrives when interest rates increase to reflect the true cost of borrowing money:
On the current trajectory, the national debt likely will hit $20 trillion in a few years. If, by that time, interest rates were to return to 5 percent (a low rate by postwar standards) interest payments on the debt could run around $1 trillion per year. Such a sum would represent almost 40 percent of total current federal revenues and likely would constitute the single largest line item in the federal budget. A balance sheet so constructed would create an immediate fiscal crisis in the United States.
You’ll definitely want to read the entire piece.