The Global Debt Bomb
Daniel Fisher, Forbes Magazine dated February 08, 2010
"... The world has issued so much debt in the past two years fighting the Great Recession that paying it all back is going to be hell--for Americans, along with everybody else. Taxes will have to rise around the globe, hobbling job growth and economic recovery. Traders like Bass could make a lot of money betting against sovereign debt the way they shorted subprime loans at the peak of the housing bubble.
National governments will issue an estimated $4.5 trillion in debt this year, almost triple the average for mature economies over the preceding five years. The U.S. has allowed the total federal debt (including debt held by government agencies, like the Social Security fund) to balloon by 50% since 2006 to $12.3 trillion. The pain of repayment is not yet being felt, because interest rates are so low--close to 0% on short-term Treasury bills. Someday those rates are going to rise. Then the taxpayer will have the devil to pay..."
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Comment: To see how absurd things have become watch out for the Toronto summit this weekend when US government officials and their academic claqueurs will anounce that even more debt is needed and when they will scream for more debt from Europe and the rest of the world like small children do for icecream. Welcome on board of the ship of fools that is heading towards collective financial suicide.
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