If the US tips into a recession, watch-out for a huge vicious cycle to begin.
recession means less tax revenue, and more unemployed. It will mean greater deficits, and more need to print money and more push to raise taxes. Either or both of which will further dampen the economic climate, furthering the downward spiral and larger deficits
Problem is, larger deficits will eventually run smack dab into no or only high rate lending. That will result in either a cold turkey evaporation or overly quick withrdawal or lending. Either will cause significant withdrawal symptoms.
Takers beware, your social security, medicare, medicaid, foodstamps, HUD checks, etc., are only one missed payment by a disfunctional beauracracy away from ending.
$200B deficit in October equals approximately $650 in new debt that every man, woman, and child (rich or not) now owes for government spending beyond its means just during October of 2012. Last years total was around $1.2T, or $4,000 per man, women and child. Before interest...