This is not good news.
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.
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.