Exactly. This house of cards will collapse...it’s just a matter of when.
Some folks posting here don’t understand that the debt will be $17 trillion when the next President takes office. It’s 14.5 now, they’re clearing the way for 2 more.
Annual revenue will still be around 2 trillion - if we’re lucky.
Annual expenses will go up from the 3.8 trillion now, probably approaching 5 trillion. Because Washington, DC thinks that it is fine.
The next President will take office with deficit approaching 3 trillion - every year deeper in debt.
And to have the markets continue to buy U.S. Treasury bonds in a scenario worse than right now, with 14.5 trillion in debt and a 1.5 trillion deficit ? They won’t because they really can’t. Default is certain if we don’t see the economy come roaring back in 2012. Which is impossible.
We are looking at an enormous financial collapse. Not politics - finance. A financial collapse.
By not raising the debt ceiling, the House could start a much smaller bubble burst now - and Obama is in the WH. If THAT does not stick to him - how will Repubs blame Dems when the collapse happens even worse after 2013.
Limping through is exactly what GW Bush did at the very end. A big turd was handed to the Dems. And it was good, because the turd was mostly created by their policies since WWII, but admittedly Repubs all along went along.
Some folks are into politics - this economic collapse is not about politics - it’s not going to be a recession that becomes just a political football. I wish those in Congress would wake up. If wait too long to pop the bubble, it’s going to be bad, utterly bad. The kind of bad that starts wars, famines, etc. The government spending bubble needs to be popped immediately.
Oh, well, this is monumentally depressing.