Lonestar_logic
Republic of Texas
- May 13, 2009
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- #21
This isn't correct either. Just because we have a surplus doesn't mean that it is going towards servicing the debt. But mainly, our debt would increase every year even if we had no deficit due to the interest on it. If we don't pay it all then it gets capitalized to the main debt amount.
Have you ever taken out a loan?
A surplus means your taking more money in than your spending. Borrowing money from your savings account to put in your checking account doesn't create a surplus.
Yes I have taken out many loans.
Your point?
Do you understand how interest works?
Do you have a point?
If so then make it and stop with the silly questions.