America’s economy is in a mess. It makes absolutely no sense that an economy that is worth US$27.7 trillion is carrying debts of US$36.2 trillion. If America was a company, would you even consider investing in it?
Around 20 years ago, the US national debt was US$10 trillion. And 20 years before that the national debt was only US$5 trillion. The national debt has increased more than sevenfold in 40 years. So, we ask ourselves the same question again: would we invest in a company whose debt has increased 600% in 40 years?
In September last year, America, for the first time, paid more than US$1 trillion on the money that it owed. That is money that it would not have needed to pay if the national debt had not ballooned over the last four decades.
The former Treasury Secretary has said that the national debt was not a problem. Instead, Janet Yellen said we should consider whether the interest payments are affordable....