Posted on 07/03/2009 10:07:05 PM PDT by FromLori
Fourth of July weekend is a time for celebration and relaxation, but also reflection on the critical juncture our nation faces. The U.S. has been on an "unsustainable cycle of buying and spending" that cuts across all strata of society, says TJ Marta, chief strategist at MartaontheMarkets.com.
The problem is that with everyone having a hand out -- from illegal immigrants to Wall Street to state and local governments -- the Federal government has now extended itself to the limits of its ability, and perhaps beyond.
Marta sees only two entities with the ability to bail out Uncle Sam - "savings glut countries" like China and the Federal Reserve, a private organization.
Both would-be saviors are getting cold feet, says the former RBC strategist:
China talks about maintaining a stable dollar policy, but just this past week signed separate deals with Hong Kong and Brazil designed to circumvent the greenback. "Watch what they do, not what they say," he says. The Fed, on the other hand, has been buying Treasuries and taking other extraordinary action to keep yields down. But a recent WSJ op-ed by former Fed governor Frederic Mishkin warning about the government's unsustainable path is "trial balloon," from the central bank, he says. "The Fed is also beginning to balk." Most Americans are already reining in their spending, which is a start. But Marta says the Obama administration and Congress must veer off their current deficit-laden course, or America's financial future will not be very pretty.
(Excerpt) Read more at finance.yahoo.com ...
Ironically the ‘commies’ (chi-coms) if it keeps going in this direction.
Illegals have been costing California billions of dollars annually for many years. When we warned what was happening we were ignored. Now the pain is spreading all over the country.
Who’s gonna rescue Uncle Sam? Easy - the children and grandchildren of the @sshats who passed these out-of-control spending bills.
Or Uncle Sam is gonna die.
There’s no third way.
End of story.
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