The government limit calculator looks at the current trends in debt accumulation, interest rates, government receipts, and more. Based on this information, it projects into the future the percent of total government receipts that just interest payments will consume. Significant economic issues are likely to arise well before interest payments on the debt consume 100% of government receipts. However, this point may serve as a good estimate of the economic point of no return. After all, how would we dig out of debt once just the interest payments exceed government receipts? Bond buyers should be very cautious of an entity that has so little financial capacity to make debt payments? Of course, financing new public debt is impossible without willing investors. Obviously, if interest consumes 100% of receipts, there is $0.00 available for other expenses.
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