Short Term Paper

As we watch the financial condition of America, we have all come to realize that our elected officials have been issuing IOU's over the past 20 years at an unprecedented amount. Why? Because just like most Americans using credit cards and taking out car loans....Congress wants shiny new toys RIGHT NOW but doesn't have the money in savings....so they put them on credit and will let a future generation figure out how to pay for them.

It really is that simple. The only exception would be infrastructure which probably SHOULD be amortized and paid off over it's useful period.

Today I ran across this statistic in regards to this country's IOU's;

5. USING SHORT-TERM PAPER - 63% of the $8.3 trillion of outstanding bills, notes, and bonds issued by the US government will mature within the
next 3 years (source: Strategas Research Partners).

Let me explain why this is potentially very serious.

What happens if those $8.3 trillion are currently financed at 2.5% interest and when they come due and all the new investors want 6% if they are going to refinance them? What if they demand 10% like is happening in Greece?

Even at 2.5%, the interest payments are soon going to take a huge amount of our revenue. What happens if 100% of our revenue soon has to go to pay the interest on our $trillions? Who will pay for our military?....China? Who will pay for our Social Security?....Greece? Who will pay for ObamaCare?....Iran?