Why is the country headed for economic misery?
*Associated Press, by Ed Bailey, December 7, 2007:
"U.S. debt: $30,000 per American
The national debt the total accumulation of annual budget deficits is
up from $5.7 trillion when President Bush took office in January 2001
and it will top $10 trillion sometime right before or right after he
leaves in January 2009. That's $10,000,000,000,000.00, or one digit
more than an odometer-style clock in Times Square can handle.
Like a ticking time bomb, the national debt is an explosion waiting to
happen. It's expanding by about $1.4 billion a day — or nearly $1
million a minute.
What's that mean to you?
It means almost $30,000 in debt for each man, woman, child and infant
in the United States.
SO HOW MUCH IS THAT?:
Even if you've escaped the recent housing and credit crunches and are
coping with rising fuel prices, you may still be headed for economic
misery, along with the rest of the country. That's because the
government is fast straining resources needed to meet interest payments
on the national debt, which stands at a mind-numbing $9.13 trillion.
And like homeowners who took out adjustable-rate mortgages, the
government faces the prospect of seeing this debt — now at relatively
low interest rates — rolling over to higher rates, multiplying the
financial pain.
So long as somebody is willing to keep loaning the U.S. government
money, the debt is largely out of sight, out of mind.
But the interest payments keep compounding, and could in time squeeze
out most other government spending — leading to sharply higher taxes or
a cut in basic services like Social Security and other government
benefit programs. Or all of the above.
A major economic slowdown, as some economists suggest may be looming,
could hasten the day of reckoning."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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