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Medicare, Medicaid and Social Security now account for 44% of total federal spending and are steadily rising.
Previous Congresses (and Administrations) have relied on the assumption that we can grow our way out of this onerous debt burden.
Unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional ways, but via inflation, currency devaluation and low to negative real interest rates.
IO201104.pdf
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