Wed Sept 21, 2011
This will not end well. Casey Research has a good post on Zero Hedge, nothing really new here but...the end result in a few years will be hyper inflation as a result of all the Central Bank money printing. At that point the debt service cost via the then higher interest rates will overwhelm government budgets. We are not there yet but the path is clear.
The article makes the point that even 'conservatives' like Dick Cheney now believe that deficits do not matter. Cheney misses the point that during Reagan interest rates were declining. To be piling on debt at the bottom of the interest rate cycle is sheer madness, and ignorance of history.
How sad that we are in the company of Greece, Ireland, Spain, Italy, and Portugal in the area of Gross GDP percentage of debt! The whole "value of the dollar" without anything tangible behind it is such an enigma to me. And the enigma seems to be coming to light for a lot of people, apparently...
Posted by: Luis Martinez | September 21, 2011 at 12:52 PM