A Problem for the Dollar Worse than Debt

$19.6 trillion. That’s the Treasury Department’s latest estimate of the national debt to reach by 2015. The debt has many folks concerned, and rightly so. There is, however, a much bigger problem facing the country and the U.S. dollar. You see, amassing debt is not good, but it’s hardly the end of the road for a government that’s still generally trusted by the financial community. For instance, Japan’s total debt is 181% of its GDP. That’s much larger relatively than Greece, Spain, Italy, or Hungary. But while the debt has been attracting all the attention, the real risk to the value of the U.S. dollar is posed by the annual budget deficits. And a little known, tried-and-true equation shows the inflation is coming in a big way. $100,000 a…