Conclusion
The only thing the Federal government seems willing to do is to continue with business as usual. Congress has made no attempt to reign in deficit spending (with the exceptions of Senator Paul and Senator Lee) and thus finds itself in a debt spiral of its own making.
A debt spiral is when an entity takes on debt and accumulates more debt to pay off the preceding debt. In other words, it borrows to pay off previous borrowing, and then borrows more to pay off that borrowing. Soon enough the entity is drowning in debt and unable to pay any of its bills. The only option, then, is to declare bankruptcy. This is the path the U.S. government currently finds itself on.
The only saving grace for the Federal government in this regard, however, is that the Federal Reserve can expand the money supply and reduce interest rates, thus lowering the interest on the debt. But the Federal Reserve and Congress are currently faced with a…
