One thing you also have to look at is that if we get further downgrades on our debt that the interest rate could go up and we would have to pay even more interest on the debt and this would further increase the rate at which the debt payments increase and reduce the amount of discretionary funds available. It could also scare investors away from treasury notes. If we cant sell treasury notes we are ruined.
Most of the models dont take into effect what happens if we have to pay more interest on the debt. What if we are looking at a %10 interest rate to borrow money? What is it now?
This is not like an absolute emergency but a few things could happen going forward. It could be harder to get a loan. If you dont have a fixed rate loan the interest rates could keep rising. The Fed could react to inflation by raising interest rates. Taxes could also go up depending who is in charge.
The so-called affordable health care act is everything but affordable and you are going to pay for it. Wait till the IRS starts hijacking tax returns to pay for people who are not insured for one reason or another. The penalties could be hidden taxes anywhere from $500 - $5,000 per year on people currently laid off.
Then the Bush Temporary tax cuts could run out. The the more money you make the worse it will hurt. Can you afford to pay that extra $2,000 - $5,000 per year? Better prepare to start eating dogfood as the price of food rises %300!
Most of the models dont take into effect what happens if we have to pay more interest on the debt. What if we are looking at a %10 interest rate to borrow money? What is it now?
This is not like an absolute emergency but a few things could happen going forward. It could be harder to get a loan. If you dont have a fixed rate loan the interest rates could keep rising. The Fed could react to inflation by raising interest rates. Taxes could also go up depending who is in charge.
The so-called affordable health care act is everything but affordable and you are going to pay for it. Wait till the IRS starts hijacking tax returns to pay for people who are not insured for one reason or another. The penalties could be hidden taxes anywhere from $500 - $5,000 per year on people currently laid off.
Then the Bush Temporary tax cuts could run out. The the more money you make the worse it will hurt. Can you afford to pay that extra $2,000 - $5,000 per year? Better prepare to start eating dogfood as the price of food rises %300!
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