Interesting opinion piece by Peter Schiff. It does not paint a bright future for us, regardless of who is elected.
From the article:
On the current trajectory, the national debt likely will hit $20 trillion in a few years. If, by that time, interest rates were to return to 5 percent (a low rate by postwar standards) interest payments on the debt could run around $1 trillion per year. Such a sum would represent almost 40 percent of total current federal revenues and likely would constitute the single largest line item in the federal budget. A balance sheet so constructed would create an immediate fiscal crisis in the United States.
http://www.washingtontimes.com/news/...-fiscal-cliff/
- CuteOldGuy
- 09-04-2012, 11:47 AM
- Whirlaway
- 09-04-2012, 12:12 PM
Peter Schiff is a pretty smart guy; in 2007 (a year before the Wall Street meltdown) he authored the prescient book:
Crash Proof: How to Profit from the Coming Economic Collapse.
"The economic tipping point for the United States is no longer theoretical. It is a reality today. The country has gone from the world's largest creditor to its greatest debtor; the value of the dollar is sinking; domestic manufacturing is winding down - and these trends don't seem to be slowing. Peter Schiff casts a sharp, clear-sighted eye on these factors and explains what the possible effects may be and how investors can protect themselves. For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients reposition their portfolios to reflect his outlook. What he sees is a nation facing an economic storm brought on by growing federal, personal, and corporate debt, too-little savings, a declining dollar, and lack of domestic manufacturing.
Crash-Proof is an informed and informative warning of a looming period marked by sizeable tax hikes, loss of retirement benefits, double digit inflation, even - as happened recently in Argentina - the possible collapse of the middle class. However, Schiff does have a survival plan that can provide the protection that readers will need in the coming years."
Crash Proof: How to Profit from the Coming Economic Collapse.
"The economic tipping point for the United States is no longer theoretical. It is a reality today. The country has gone from the world's largest creditor to its greatest debtor; the value of the dollar is sinking; domestic manufacturing is winding down - and these trends don't seem to be slowing. Peter Schiff casts a sharp, clear-sighted eye on these factors and explains what the possible effects may be and how investors can protect themselves. For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients reposition their portfolios to reflect his outlook. What he sees is a nation facing an economic storm brought on by growing federal, personal, and corporate debt, too-little savings, a declining dollar, and lack of domestic manufacturing.
Crash-Proof is an informed and informative warning of a looming period marked by sizeable tax hikes, loss of retirement benefits, double digit inflation, even - as happened recently in Argentina - the possible collapse of the middle class. However, Schiff does have a survival plan that can provide the protection that readers will need in the coming years."
- joe bloe
- 09-04-2012, 01:10 PM
That's probably where we're headed; much higher debt + much higher interest rates = game over.
- CJ7
- 09-04-2012, 01:14 PM
- joe bloe
- 09-04-2012, 01:18 PM
vote for Willard and Paulie ... they contend to fix the debt crisis? in 2040-2950When does Obama say the budget is going to balance? I don't think he even has a guess.Originally Posted by CJ7
Obama did say that if he didn't turn the economy around in three years, he knew he wouldn't get re-elected. I agree.
Obama is toast.
- CJ7
- 09-04-2012, 01:21 PM
too close to call either way