Tim Geithner, the US Treasury Secretary, has faced searchingquestion about the growing US Budget deficit.
From The Telegraph:
The US economy is lurching towards crisis with long-term interest rates on course to double, crippling the country’s ability to pay its debts and potentially plunging it into another recession, according to a study by the US’s own central bank
In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt. Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interests rates will double from their current 3.5pc.
Read more ....
My Comment: A sober assessment on our financial crisis .... and on where we are going. The impact on National Security and the military will be obvious. A financial crisis will result with defense budgets slashed, and personnel eliminated.
The authors believe the crucial point will be reached within 5 to 10 years if nothing is done .... my bet .... at the rate everything is going right now, I would make it sooner.
No comments:
Post a Comment