While President Obama's Budget Director Peter give's his "swan-song" speech Friday, the Congressional Budget Office, which he formerly ran, beat him to the punch by announcing the U.S. is headed for a major "Greek-like" financial crisis if it doesn't get it's financial house in order. The CBO stated that interest payments on the debt may likely double to $900 billion annually by 2015 if we continue down this path. Their report looked at countries like Greece, Ireland and Argentina where those countries were faced with paying sharply higher interest rates. We've seen the predicament Greece is in with the International Monetary Fund (IMF) now telling them what to do... will this mean holders of U.S. debt such as Japan and China will look to tell the U.S. what to do within the next five years?
With the debt levels soaring, Moody's, the bond rating service, again warned that the U.S. is as risk of losing it's bonded AAA credit rating which we've had since 1913. This, along with our poor economy, could cause foreign nations to look elsewhere to buy bonds, causing U.S. bond interest rates to climb. The CBO says if interest rates climb, we could be paying $100 to $400 billion more per year in interest... money doing nothing for us but going down the drain!
When will Congress wake up and realize they can't keep spending and adding debt? Now is the time to make your voice loud and clear... WE'VE HAD ENOUGH!
-Rick
I saw this on the business news too Friday. The CBO is a neutral office setup by Congress to advise them on financial matters. They are screaming loud and clear to our legislators that we are headed for a deep financial crisis, the size that no other nation could bail us out of, yet Congress continues to steer the boat as if nothing is wrong. The Niagara Falls are straight ahead and getting closer every day!
ReplyDeleteI agree completely. I'm not sure how non-partisan the CBO really is. And where were they with the bailout, the Obamacare, and all the other spending over the past year? Somehow Obamacare went from "saving" us money and paying down the debt, to "costing" us money and increasing the debt. The rest of the bailout money that is not yet spent needs to go back and pay down the debt, and we need to go on a strict diet. BUT, the Dems are in power, it's an election year, and they need to "buy" a bunch of votes because they are in trouble. We need to elect Rick and 200 more like him, change the Senate and stop this nonsense before we are speaking Chinese.
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