Breaking Point

By Robert Romano

“There is some sort of breaking point. The federal government can’t keep expanding its borrowing without having to incur some costs.”—Thomas Girard, New York Life Investment Management.

Barack Obama is bringing America to the breaking point. And time is rapidly running out to reverse course.

Now that ObamaCare is the law of the land, the nation’s skyrocketing debt is set to grow at an alarming rate.

Currently the U.S. has about $12.6 trillion in outstanding treasuries (i.e. debt) that will eventually have to be paid back. Another $2.43 trillion of debt treasuries will be sold this year, projects Bloomberg News. That’s more than it has ever sold in history, and about $521 billion more than the White House had projected the national debt would grow in 2010.

Importantly, it’s also some $874 billion more than the projected budget deficit of $1.556 trillion for 2010. A good chunk of that is the amount that has to be paid back immediately on the principal owed.

For now, the U.S. is able to pay off that principal through the sale of more treasuries. For now.

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