In my mind the U.S. debt it out of control.  Coming in at $12.1 trillion and growing countless people are wondering how the Government will be able to service the debt with an economy that is flat or contracting.

The short, very possible, answer is that will be unable to do so.  While the non-partisan Congressional Budget Office has sounded the alarm in the past some very shocking number are out from a number of sources – data that should make everyone take notice.

• Half of the debt ($4.8T) built over the next 10 years will be interest on existing debt
• Interest due in 2015 will be $533 Billion or 1/3rd of ALL federal income taxes collected for that year
• Roughly 40% of U.S government debt will need to be refinanced within the next year

The real question is this: What happens if (when) the U.S. cannot service the debt? Oh, yea. Maybe that is part of the reason why people are fleeing the dollar as an investment.

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