Sunday, May 09, 2010

The Approaching Brick Wall

A what point does the federal debt overwhelm us?

"Nobody knows when you bump up against the limit, but you know when it happens it will really hurt," said fiscal watchdog Maya MacGuineas of the Committee for a Responsible Federal Budget.

Right and wrong in one sentence...

It's not a "limit" we are approaching, something you reach and then continue to push against, but a brick wall that when you reach it, well, you know what happens... wreckage everywhere.

Truly ungood news:

In the wake of the financial crisis and recession, Moody's Investors Service has brought new transparency to its sovereign ratings analysis — so much so that 2018 lights up as the year the U.S. could be in line for a downgrade if Congressional Budget Office projections hold.

The But under more adverse scenarios than the CBO considered, including higher interest rates, Moody's projects that debt service could hit 22.4% of revenue by 2013.

So now you have some real dates to get your head around, a time when you need to be prepared and ready for some dark days and terrifying nights.

Be an ant, not a grasshopper. This is no time for reckless abandon.

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