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Politics : Politics for Pros- moderated

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To: LindyBill who wrote (524194)	11/23/2012 3:39:35 PM
From: Copeland	3 Recommendations Read Replies (1) of 793883

Re: Our financial future Well, at some point there will be that proverbial day of reckoning. The US currently has a 110% debt to GDP ratio. That's been increasing pretty quickly -- roughly 9-10% per year during the Obama administration. Historically, once a country hits 150% debt to GDP, it prices itself out of the bond market and has no choice but to go on a printing spree to pay the bills, resulting in severe inflation. Will that happen to us? Ultimately, it depends if the greenback stays a reserve currency and that, itself, depends on whether or not the oil trade continues to be priced in dollars. Reducing the ratio by increasing GDP seems to be an impossibility unless we come up with some sort of new monumental new technology (like the graphics-based internet web browser was in the early 90s). Either way, this country can't continue to borrow without cutting entitlement spending massively. Obama's plans to gut the defense department in order to reduce government spending is not enough to offset all the other programs he has envisioned on the drawing board.

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