September 23, 2009

Alarming Debt

This is not good news.

The CBO predicts Social Security cash deficits in 2010-2011

John Taylor, a professor of economics at Stanford University, has put up on his blog some astounding charts to show
the immensity of the explosion of debt problem we now face in the U.S.  His alarming debt charts.

Debt Chart

Here's a grabber of a headline, U.S. Debt Crisis May Cause ‘Fall of Rome’ Scenario, Duncan Says

The U.S. has little chance of resolving its deteriorating financial position because the manufacturing industry continues to shrink, leaving the nation with few goods to export, said Duncan, now at Singapore-based Blackhorse Asset Management.
“As unemployment remains above 10 percent well into the foreseeable future, it won’t be long before Americans start voting for protectionism,” Duncan said. “That’s going to be bad because protectionism will mean world trade will diminish and will overall reduce global prosperity.”

Once the U.S. debt burden becomes too large and the government can no longer sell debt to the public the Federal Reserve will likely step in and monetize it, resulting in high levels of inflation, he said.

Posted by Jill Fallon at September 23, 2009 11:32 PM | Permalink