...No, not Jacko's Chimpanzee!
I'm talking about the Debt Bubble... They would like you and me to think this is all really complex stuff with labyrinthine formulae that nobody less than a PhD from Princeton School of economics could understand.
Well, I have managed to find a short treatise written by another PhD, J.D. Foster (working with the Heritage Foundation) that spells it all out in simple terms. I really encourage you to read through this so you can understand where all this profligate debt creation by Congress and Barry O. will leave us... A very well founded document worthy of your valuable time!
Here is the opening paragraphs:
President Barack Obama and top Congressional Democrats are leading the world toward a new global government debt bubble. The United States appears headed toward a multi-trillion-dollar increase in publicly traded federal debt in just the next two years, with much more to come. Other nations appear to be following suit.
This debt explosion is likely to raise interest rates significantly for government debt, thereby increasing interest costs for future generations. More troubling at the moment, this policy will increase interest rates for all private debt such as home mortgages, consumer loans, and business loans. The near-term consequences of this debt bubble will be a deeper recession, a longer recession, and a weaker eventual recovery.
And the link to the full article:
http://www.heritage.org/Research/Economy/wm2257.cfm
Best,
Mike
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I'm glad you used the plural, "bubbles," because the first bubble was birthed via ninja loans. We seem to be a runaway train of spending what we don't have. When is someone going to pull the brakes?
It might be too late, but I'm still rooting for the slow-to-show hero. *cue sappy inspirational music*
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