Debt exploded under Bush and now under Obama it is just about uncontrollable. I don’t now how much longer the world will allow us to export trillions of dollars a year but when that stops, we collapse just as hard as the USSR did. Already India, China, Russia and others are stopping their use of dollars for international purchases. The clock is ticking and the red light is flashing. Were Germany to leave the Euro and issue D. Marks the dollar would be toast.
Hence the warning from Gov. Daniels.
Of course, the socialists aren’t even being subtle - it’s Cloward-Piven letter by letter. Increase the government obligation(debt) to the point it’s unsustainable and the economy collapses.
If they are not stopped, probably in the middle of the next 4 years, or earlier, the credit ratings on US debt will fall very quickly and the US currency will no longer be the currency of international trade.
When that happens the wheels literally fall off and our economy implodes. The solution, in the face of the panic after the US dollar has been derailed, will be a new world currency. A world currency is already being discussed by the international financial community and in places like the IMF.
Just one of many articles about what is being discussed
http://theeconomiccollapseblog.com/archives/shocking-new-imf-report-the-u-s-dollar-needs-to-be-replaced-as-the-world-reserve-currency-and-that-sdrs-could-constitute-an-embryo-of-global-currency
I have been reading speculation in the comments sections of a British newspaper about these countries threatening to use gold to pay Iran for oil. That is scary.