Like most of us who have been reading Cullen’s pieces, I understand that the federal government cannot “run out of money” and that the risk is inflation. Every now and then I see an article that presents some numbers that give me pause and make me wonder how we will avoid harmful inflation. I know that past hyperinflations (since 1900) have always had some other severe, exogenous event going on, but wow, the numbers in this article from Reason seem scary. Of course, any projections by the CBO need to be taken with a grain of salt.
Here’s a couple of items from the article that jumped out at me: “in the next decade, net interest will go from $270 billion to $768 billion.”
“The CBO also reports that the share of the budget devoted to those payments is growing, from 7 percent today to 21 percent in 2047.”
Here’s a link to the article:
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