In case you haven’t heard, our debt levels have gone nuclear. There is no stopping the debt rocket. By 2035 we will have debt,that is money owed to bond holders, that will surpass anything the world has ever seen.The interest to pay the holders of this debt will consume 50% of our budget.
Putting this in perspective, imagine your mortgage payment eat up one half of your yearly earnings. To understand the quagmire we are in, simply put, the one half of your salary goes towards Federal Taxes, Social Security, State Income tax. What is left is a big fat zero. That might get your attention in a millisecond.
Real numbers look like this, $100,000 salary, $50,000 for mortgage, insurance and real estate taxes, 25% for Federal, state and city taxes or $25,000, left to pay for all other necessities, like food, car insurance, travel, gas, etc. You will be in a real bind with nothing left for emergencies or entertainment.
Wait, it will get worse! The day of reckoning is coming soon. Will it be 2034 or 2035?