Posted on 07/29/2010 10:14:08 AM PDT by RobinMasters
The mushrooming U.S. government debt burden may cause a new financial crisis by spurring a sharp rise in interest rates, warns Doug Elmendorf, director of the Congressional Budget Office (CBO).
Countries such as Greece already have seen such crises, as their debt buildups sent interest rates soaring and drove away international bond investors.
The CBO projects that U.S. federal government debt will reach 62 percent of GDP by Sept. 30, up from 36 percent just three years earlier. Only once before has that figure surpassed 50 percent, during and just after World War II.
The debt, of course, is created by massive budget deficits, with the White House projecting a gap of $1.47 trillion this year.
Elmendorf sees two possible outcomes for our current predicament – one mild, one harsh.
As for the mild alternative, “It is possible that interest rates might rise gradually as investors’ confidence in the U.S. government’s finances declined, giving legislators sufficient time to make policy choices that could avert a crisis,” he wrote in a blog on CBO’s website.
(Excerpt) Read more at moneynews.com ...
HUSSEIN doesn’t care, he’ll just continue to party and golf.
Here comes another Stimulus..... =.=
Obama to CBO: Yeah, and...?
No risk at all. It is a certainty.
Two Words: Cloward Piven
BUUUUUUUUUUUUUTTTTTTTTTTTTTTTTT, Zero told the girls on the view that everthing if fine with the econ.?????
Gee, I wonder what happened in the last three years that could've caused this? Maybe the demonrats gaining control of Congress? Nah, must be something else.
Really. Does the CBO think that this is a point of concern to 0bama? This is what he’s hoping for!
“Here comes another Stimulus”
No, here comes even more devious stuff like a VAT. Let’s hope the Republicans don’t cave into Barry’s long planned VAT. We need to storm the Republicans offices if they allow a VAT.
Our POTUS is an idiot backed by an idiot-ridden administration.
Pearl of wisdom here: If the lips of the AnnointedIdiot move, he is lying. =.=
Can’t do anything about the deficit until every inner city chile has a laptop with high, speed internet access, a plasma tv and a scholarship to an Ivy League college.
I thought Obama-care was going to fix that...No, now we need to add a public plan to reduce the deficits (can't we just cancel the new Obama-cares’s spending instead ?) I thought the jobs bill was going to create more tax revenue. How about all those 'investments'?
More good news in Obama-land: 8 More Reasons Why a Double Dip Is Coming
Obama :”I inherited everything you don't like”
To which he would reply, “Cool!”
Wow, he nails everything in this article. It's played out just as he predicted.
Yep. Obama is right on schedule.
And abetted by Congress.
I think Obama's job is to cause irrecoverable damage until 2012. Then a republican will be elected but will immediately get all the blame. In addition, Obama's ouster will set race relations back 50 years.
People seem so excited about 2010 and 2012 elections, but I think we may be totally screwed. Hate to be pessimistic but it feels like we are in the middle of a huge forest fire and we're throwing a bucket of water on a branch and celebrating that it went out. Meanwhile we're surrounded by miles of destruction.
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