Messrs. Obama/Bernanke and Geithner are betting the country on the assumption voiced by Bernanke Wednesday that the bond buying market “seems to be accepting” the borrowing needs of the US.
Bernanke went on to say that such a situation would be dependent upon the lenders detecting a “sustainable fiscal path…” for the US going forward. I think “sustainable fiscal path” means cooling it on building sovereign debt. Where is that path?
On Wednesday, TheFundamentals asked for specific projections of US Debt for the three anniversary periods of BHObama’s inauguration. Until and unless this group of people is willing to issue and be measured against specifics it may be imprudent to finance these ever increasing deficits.
Is the US government engaging in the act of taking in borrowed funds without providing adequate information to lenders to permit them to make a prudent decision regarding such financial transactions? Further, how will this government and its successors be able to meet the servicing obligations of this debt and meet the other financial commitments it has made via entitlement programs and other obligations?
Are folks who permit their funds to be invested in US government obligations doing so at their own risk? This government has burdened us all with literally mountains of debt which means servicing obligations measured in the hundreds of billions as far as the calendar can see. How will they service the debt and repay the principal? Will they end up monetizing the debt? Print money?
There was a time when the King’s men showed up and took your cattle, your crops, perhaps even, your sons and daughters and the folk stood helplessly by. How is this different? The taxpaying folks have no control over this massive debt buildup. We are in a horrible mess because this government has spent money it did not have on unnecessary and nonessential purchases and programs. And the citizenry does not know where to turn. When will the madness stop? What will stop it?
Caveat Emptor.
2 comments:
What is your problem? Wait for the details. Where were the (your) taxpaying folks the last 8 years? "Nonessentials...give me a break. Take a deep breath and think about it.
Veronica,
You, apparently, haven't lived long enough to recognize that these people are going to put you so far in debt that you will never survive their taxes. You might just as well get ready for slavery big-time. You must be a product of the public school system where they don't teach American History any longer, that they haven't corrupted. Good Luck because you're going to need it to survive.
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