Implications of the U.S. National Debt — The Upright Spike
It is noteworthy that the Federal Debt chart has again turned sharply upward, to nearly an upright spike, rising to 90%+ of GDP. This level of Federal indebtedness had only one precedent: the massive spending that was needed to finance World War II. The current massive over-spending on the Mother of All Bailouts (MOAB) can’t go on indefinitely. At some point, the piper must be paid. In the long term, gross overspending will have some major implications for U.S. Treasury paper, and inevitably for the U.S. Dollar as a currency unit. I should mention that in 1945 (the peak of …