[Caymus]

Originally Posted by mntlblok

"We should implement a flat tax of 10% for everybody, no deductions, no loopholes"

Ahh, but that's still progressive taxation, no? A flat tax would be everybody writes the same size check. Sorta like the way everybody gets the same number of votes - the old "one man, one vote" thing. Except they now let *wimmin* vote!

On a more serious note, what I keep wondering is what happens where a threshold is crossed when the combination of national debt size and high enough interest rates leads to a % of the budget being paid out as interest on said debt becomes unsustainable.

Have read a fair bit of speculation about the subject of late. The most plausible (to me) is that it happens gradually - and then all of a sudden. Reading more and predictions that have it occurring during my (likely) lifetime. Hard to anticipate much likelihood of a sudden turn towards fiscal responsibility by our "leaders" on the national level in time to avoid that cliff. Could get interesting. . .

So, I'm wondering if your spreadsheets include any "assumptions" that factor that scenario in. That is, SS payments get massively and suddenly reduced.

Isn't that a cause for hyperinflation? The government repays loans with "cheaper" dollars.