– this was taken from a news letter (Review & Focus) sent out to customers of EverBank. It’s written by Chuck Butler, President, EverBank World Markets.
– I highly recommend EverBank (www.everbank.com).
– dennis
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… “the U.S. debt is now more than $15 trillion. Our GDP is about $14.5 trillion. Our debt is greater than our GDP! And that’s just the current debt … When you take in the unfunded liabilities, our debt is really $117 trillion.
So, no matter what side of the aisle you sit on, our country has built up a debt that will be difficult to even pay the debt servicing on never mind the repayment of the debt! With the current path of deficit spending, in 2017 the tax receipts of this country will be eaten up by debt servicing (interest payments on bonds), and it could become sooner if interest rates begin to return to normal levels in the next couple of years!
If I were running for President, I would point out that in a very short time, relatively speaking, the Chinese have become the largest foreign holder of our debt, and that two different Chinese leaders have expressed disappointment in our debt levels, and have suggested that the Chinese look elsewhere. When the Chinese fail to show up for a bond auction, the world as we know it will come crashing down, with the dollar in tow.”