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A Mountain of Debt

October 27, 2009

America’s Debt Headache is chronic and overwhelming.

How bad?

The USA is in danger of losing its AAA rating

which would be disastrous. In 2020 the USA

debt will reach 100% of GDP.

Other countries are looking for another currency.

For now the Yuan is not plausible because it cannot

because other countries cannot use it to intervene

in markets because it is not convertible.

The dollar share of foreign reserves has dropped

by 10% in the last ten years.

What to do? Japan raised taxes and it killed the

economy.

It is the  spending, stupid.

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