Mandeville, LA – Exclusive Transcript – Folks, if you’re wondering what he’s talking about, here’s what happens. The borrowing authority is granted by lifting the so-called debt ceiling. Where does the money come from? Do you just print it off? That’s one way that you could do it. What generally happens is the Treasury Department tells all their buddies on Wall Street: We’re going to issue $110 billion in Treasury notes. Check out today’s transcript for the rest…
Begin Mike Church Show Transcript
Mike: David is in Ohio next on the Mike Church Show, Sirius XM Patriot Channel. Hello, David.
Caller David: Good morning, Mike, how are you?
Mike: I am well, sir, thank you.
Caller David: It is a beautiful day here in sunny Cleveland, Ohio as the sun comes up. Unfortunately I feel that the number of sunny days ahead for this country are very limited. What we witnessed is a legislative body of Republicans and Democrats — we’re on a 747, all together. As the pilot came on and said they lost all power and was going to take the plane down to 10,000 feet where it would be safe to jump out, everybody said: That’s a good idea, let’s jump. At the end of the day, we are now faced with what I describe as an implosion of America. There is no way financially that the United States of America can come out of its debt, nor will have the financial capability by the year 2016 to even pay the interest on the debt. If you go to the Treasury website, they clearly predict a $20 trillion deficit by 2016. The debt service today through the 2014 budget is projected to be $395 billion and a blanket interest rate of 2.63 percent. If you carry forward what our illustrious leaders have just done by raising the debt ceiling to an additional $900 billion, which we know will be spent by the king between now and February —
Mike: That’s chump change.
Caller David: As Paul Harvey would say: Now for the real truth of the story. We will probably be at $20 trillion by 2015. As interest rates go up, and as the world, particularly the Chinese, realize that their investment in America will never be seen, once we hit 4.5 percent interest rate on $20 trillion, we have annual interest of $960 billion a year. For a government that’s only taking in $2.2, $2.4 trillion, Houston, we got a major problem. We’ll collapse.
Mike: You see, our problem though is not as big — the only thing that’s keeping us afloat is that the rest of the world sucks even worse than we do. The Spaniards and the French and the Portuguese and the Greeks and the Irish and the Japanese — the Japanese are far worse off than we are. You want to talk about debt to GDP ratios, they’re already where you’re talking about we’re going to be.
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