What Peter Schiff said in 2022 about the debt situation in the US
(additions to this blogpost of mine)
"When the National Debt hits $35 trillion next year, at a 6% interest rate, annual interest payments on the National Debt would exceed national defense, welfare, and education spending combined. At 8% interest would exceed Social Security, national defense, and education combined." (In this tweet 21 okt. 2022)
"At the rate the National Debt and interest rates are rising, before the decade ends interest on the National Debt will exceed 100% of federal tax revenue. The entire Federal Government would then consist of the Treasury Department, which would just collect taxes and pay interest. (in this tweet 21 okt. 2022)
I remember Schiff saying, in a recent tweet, I think (?), which I cannot find, that US national debt will be 70 trillion when this decade ends, and that the US government then will pay 5 trillions in interest payments, 20 % more than its earnings today. It would be in accordance with what he said above, and somewhat in line with my own calculations.
In this recent article three days ago, Kay Smythe said: "Schiff argued America’s national debt “is already unsustainable.” Adding “if rates just stay at 5%, by the end of 2025, if not sooner, the debt will rise to $40 trillion. 5% of that is $2 trillion per year. That’s about 45% of annual federal tax revenue and 46% more than annual Social Security spending.” "
We are entering interesting times, indeed. It will be interesting to see if Schiff's predictions above come to pass. They are in harmony with what I know about Peak Oil, energy scarcity and the rising EROEI (Energy Returned on Energy Invested). Though, Peter Schiff almost never talks about oil, and never about Peak Oil.
The national debt on the US debt clock is now at 33, 674 trillion dollars.
