Peak Per Capita Government Revenues: Real Austerity Is Inevitable

Sierra Rayne
To those with even basic historical knowledge, the recent increases in government spending are unsustainable.  The rising debt of the USA -- and its fellow nations in the West -- is residing under the illusion of continued low long-term interest rates.  Current low interest rates minimize interest payments on government debt, but they are unlikely to last. For a graphical reinforcement, consider the following chart created by Louise Yamada Technical Research Advisors, and published by CNBC/Yahoo, showing US interest rates from 1790 up to the present. According to Yamada's research, "the average [interest] rate has been 5.18% since the start of [the United States'] history."  The current low interest rate period is the second-lowest in over 220 years, and well below the historical average. Of great concern is that the USA appears to be moving into a period of structural federal deficits.  The following chart shows per capita federal...(Read Full Post)

COMMENTS ON AMERICANTHINKER