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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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From: austrieconomist10/12/2004 5:50:33 PM
   of 110194
 
Not sure of the source, maybe 321gold, but the US may soon be seeing the limit of debt expansion.

"The GAO, as we have previously reported, announced in its so-called "end of sheet" comments to its 2003 consolidated audit of U.S. government fiscal operations that the budget and trade deficits being accrued by the policies of the current regime were consuming 78.4% of the entire planet's net savings rate, a figure that has now grown to 81.3%, in order to finance U.S. debt.

The GAO also noted that should the current regime remain in office for a second term and its policies of "politically popular but wasteful defense spending" (...) along with its encouragement of negative debt finance consumption and continuous proffering disproportional tax cuts (...) were to persist, then, by the second quarter of 2009, the U.S. would no longer be able to service its debt in that the economies of the rest of the planet could not generate sufficient capital in the form of savings for the U.S. to borrow in order to finance its debt."
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