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Since I'm not a very good writer I'll copy and paste a portion of the talking points of this article. This article describes the effect of the ever-increasing sovereign debt and no money doesn't grow on trees. Everyhousold knows that.
"Imperiling the Safety Net. America’s high debt jeopardizes the safety net and the most vulnerable in our society. If our government does not have the resources and stability of a sustainable budget, those essential programs and the individuals who need them most are put in jeopardy. (Our entitlements?)
Reduced Public Investment. As the federal debt mounts, the government will spend more of its budget on interest costs, increasingly crowding out public investments
Reduced Private Investment. Federal borrowing competes for funds in the nation’s capital markets, thereby raising interest rates and crowding out new investments in business equipment and structures. Entrepreneurs face a higher cost of capital, potentially stifling innovation and slowing the advancement of breakthroughs that could improve our lives
Fewer Economic Opportunities for Americans. Growing debt also directly affects the economic opportunities available to every American. If high levels of debt crowd out private investments in capital goods, workers would have less to use in their jobs, which would translate to lower productivity and, therefore, lower wages.
Greater Risk of a Fiscal Crisis. If investors lose confidence in the nation’s fiscal position, interest rates on federal borrowing could rise as higher yields would be demanded to purchase such securities. A rapid increase in Treasury rates could also lead to higher rates of inflation, which would reduce the value of outstanding government securities and result in losses by holders of those securities — including mutual funds, pension funds, insurance companies, and banks — which could further destabilize the U.S. economy and erode confidence in U.S. currency on an international scale.
(this is happening now with credit rating and countries offloading treasuries)
Challenges to National Security. former Chairman of the Joint Chiefs of Staff, put it: “The most significant threat to our national security is our debt.” As the national debt grows, we are more beholden to creditors around the globe and have fewer resources to invest in strength at home."
The Fiscal & Economic Impact of the National Debt
See the consequences of our growing national debt and learn how our economic future is at risk if we fail to improve the U.S.’s current fiscal policy.
www.pgpf.org
Reduced Public Investment. As the federal debt mounts, the government will spend more of its budget on interest costs, increasingly crowding out public investments
Reduced Private Investment. Federal borrowing competes for funds in the nation’s capital markets, thereby raising interest rates and crowding out new investments in business equipment and structures. Entrepreneurs face a higher cost of capital, potentially stifling innovation and slowing the advancement of breakthroughs that could improve our lives
Fewer Economic Opportunities for Americans. Growing debt also directly affects the economic opportunities available to every American. If high levels of debt crowd out private investments in capital goods, workers would have less to use in their jobs, which would translate to lower productivity and, therefore, lower wages.
Greater Risk of a Fiscal Crisis. If investors lose confidence in the nation’s fiscal position, interest rates on federal borrowing could rise as higher yields would be demanded to purchase such securities. A rapid increase in Treasury rates could also lead to higher rates of inflation, which would reduce the value of outstanding government securities and result in losses by holders of those securities — including mutual funds, pension funds, insurance companies, and banks — which could further destabilize the U.S. economy and erode confidence in U.S. currency on an international scale.
(this is happening now with credit rating and countries offloading treasuries)
Challenges to National Security. former Chairman of the Joint Chiefs of Staff, put it: “The most significant threat to our national security is our debt.” As the national debt grows, we are more beholden to creditors around the globe and have fewer resources to invest in strength at home."