Here’s a somewhat
pessimistic but entirely possible scenario for the next 4 years:
1) The debt continues to climb under Obama. We will hit at least 20 trillion by the end of his 2nd term.
2) We are going to have a harder and harder time finding people/funds/companies/countries who are willing to invest in the U.S. Our credit rating will probably get downgraded again. Interest rates will start rising.
3) The government will continue printing money to fund the deficit spending. Inflation will kick in which will drive interest rates even higher.
4) The interest on the national debt will soar, possibly becoming the largest single item in the budget. Annual deficits will be driven even higher.
5) Go back to #1 and start again.
Doesn't sound too good, does it?
1) The debt continues to climb under Obama. We will hit at least 20 trillion by the end of his 2nd term.
2) We are going to have a harder and harder time finding people/funds/companies/countries who are willing to invest in the U.S. Our credit rating will probably get downgraded again. Interest rates will start rising.
3) The government will continue printing money to fund the deficit spending. Inflation will kick in which will drive interest rates even higher.
4) The interest on the national debt will soar, possibly becoming the largest single item in the budget. Annual deficits will be driven even higher.
5) Go back to #1 and start again.
Doesn't sound too good, does it?
Mike Rosen
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