“The 800-pound gorilla in the room is the US government’s horrendous deficits and addiction to debt. The Fed is keeping interest rates low to sustain the illusion that the US government is solvent, while hoping that low rates will also jump-start the US economy and thereby increase federal tax revenue to service the mountain of debt. But despite all of the money printing by the Fed from buying government paper, the economy remains in the doldrums, so the US government’s financial position is becoming increasingly precarious. That’s why the US lost its triple-A status. We should expect another downgrade soon, just like is happening with the serial downgrades in Europe.” James Turk“The 800-pound gorilla in the room is the US government’s horrendous deficits and addiction to debt. The Fed is keeping interest rates low to sustain the illusion that the US government is solvent, while hoping that low rates will also jump-start the US economy and thereby increase federal tax revenue to service the mountain of debt. But despite all of the money printing by the Fed from buying government paper, the economy remains in the doldrums, so the US government’s financial position is becoming increasingly precarious. That’s why the US lost its triple-A status. We should expect another downgrade soon, just like is happening with the serial downgrades in Europe.” James Turk -- (May 3, 1923 – July 6, 2014) former Virginia State Senator and United States Federal Judge.
Posted on: Fri, 12 Dec 2014 16:23:58 +0000
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