I read that our country's debt has increased by $4.163 TRILLION in the last year to $26.786 trillion. WOW! We will probably hit $30 trillion next year. Why is this important to us? First, the massive payments on this debt cause budget cuts in other places or should. Second, this much debt crowds out the private market of the business world.
Third, this debt will cause interest rates to move. For the last 12 years many smart people believed that our growing debt burden would cause inflation and interest rates to rise. However, the opposite has happened as this debt is actually deflationary...so far. Will this trend to lower rates continue? I only hope so. Otherwise imagine our country with $30 trillion in debt and our average interest rate is 4%, that means interest only payments of $1.2 trillion. This would mean eliminating all social welfare and assistance programs or the military. Not a good choice.