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Wednesday, January 23, 2013

Debt Bubble

The Economic Collapse Blog is alarmist, yet the writer uses enough data for me to take it seriously. For example: The Sovereign Debt Bubble Will Continue to Exand Until - BANG - The System Implodes. But inside this article?
In general, most economists consider a debt to GDP ratio of 100% to be a "danger level", and most of the economies of the western world have either already surpassed that level or are rapidly approaching it. Of course the biggest debt offender of all in many ways is the United States. The U.S. debt to GDP ratio has risen from 66.6 percent to 103 percent since 2007, and the U.S. government accumulated more new debt during Barack Obama's first term than it did under the first 42 U.S. presidents combined. This insane sovereign debt bubble will continue to expand until a day of reckoning arrives and the system implodes. 
And, like me and many others, he points out that the media is obfuscating reality for the Americans who rely on them for information. For his sources please visit the article by using the link above.

He's right.

As is a RedState writer saying "every new proposal [of spending cuts in Congress] will be moot as long as Obamacare is still funded." Too true. Programs breed dependency which breed expense for the American taxpayers.

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