Borrowing on Your Grandchildren’s Projected Future

US Debt $14T. Latest plan to avoid ruin is to cut $1T over the next 10 years. Compound interest on $13T over 10 years = $8T. Fail.

Borrowing on projected growth is always dangerous and risky, but particularly so if you already have huge debts (as the US has) – the interest alone is crippling.

Right now they might not seem to have a choice, but that merely proves the original point, doesn’t it?