“The dollar’s “extraordinary privilege” as the primary unit of international trade allows the U.S. to borrow at relatively low rates of interest. However, the emerging scale of U.S. Government borrowing creates uncertainty about both our ability to repay the ever growing debt and the future value of the dollar. Moreover, “any sudden stop in lending…would drive the dollar down, push inflation and interest rates up, and perhaps bring on a hard landing for the United tates…”

“if current trends continue, the U.S. will be transferring approximately seven percent of its total economic output abroad simply to service its foreign debt.”

“Interest payments, when combined with the growth of Social Security and health care, will crowd out spending for everything else the government does, including National Defense.”

OMG: “Habsburg Spain defaulted on its debt … its overseas empire
collapsed. Bourbon France became so beset by debt due to … its overthrow by revolution. Interest ate up 44% of the British Government budget …..inhibiting its ability to rearm against a resurgent Germany. Unless current trends are reversed, the U.S. will face similar challenges…..going to pay interest on the money borrowed to finance our deficit spending.”

References include: Peterson-Pew Commision, Heritage Fdn, Krugman, Niall Furguson, Whirled Bank, etc…I have to this point taken some solace in the fact that our Military had never shown any evidence of being captured by these dangerous beliefs. Resp,

The 30,000 pound bomb under development for this purpose was supposed to be ready this July but won’t be ready until the end of the year.