From The Market Ticker:
"Debt is projected to have to double to produce this on a government and systemic level? That means debt-carrying costs will have to double against an increase of 28% in output.
Like hell that will happen. We hit the wall in 2007 as a consequence of inability to cover debt service.
Folks, the FOMC put you on notice with this set of minutes: They know this is going to blow up, they expect it to blow up, and there is no way to avoid it blowing up as carrying costs will double while the output to cover it will grow by less than 30%.
Get ready."
Remember the fall of 2008? That was nothing compared to what the Fed just admitted to this morning.
How do we deal with this? By admitting it and preparing for what is going to happen to all levels of the economy. Government will be paralyzed, so contingencies better be planned.
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