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posted: 10/28/2013 5:00 AM

We can't take out 'payday loans' forever

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A paraphrase from one of our president's many, many, speeches in effect is saying: "Increasing the national debt does not increase the debt because that money has already been spent to pay for our armed forces, old people, salaries of Washington staffers, place fences around memorials, etc."

If that is true, then the U.S. will need to borrow more and rack up more debt for the new bills that are coming, since this current round of debt increases, according to our president, is only going to pay for the past-due bills and they won't raise the debt?

It reminds one of "payday loans." On the day you pay back the loan, you need to take out another to make it to the next payday, and on and on into infinity.

Sooner than later that will require tax increases, unless you believe that the federal bank can keep the interest rate a notch above zero forever. Once that rate starts to rise is when reality hits. That is the part that either/neither/both parties are not talking about.

Duke Lipensky

Wheaton

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