Pied Piper Obama leading US off debt cliff

April 22, 2010 03:30

Federal debt is projected by the Congressional Budget Office to increase by nearly 250 per cent over 10 years, from $7.5 trillion to a whopping $20 trillion!

via Newsmax.com

While the global financial system remains transfixed the by the problems of Greece and several other European countries risking default over their massive debts, the real threat is whether the credit standing and currency stability of the world’s biggest borrower, the US, will be jeopardized by its disastrous outlook on deficits and debt.

That’s the fear raised in a devastating op-ed on the Financial Times website written by Robert Altman, a former deputy US Treasury secretary under President Clinton who is now chairman of Evercore Partner, a leading global advisory and investment firm.

“America’s fiscal picture is even worse than it looks,” Altman writes. “The non-partisan Congressional Budget Office just projected that over 10 years, cumulative deficits will reach $9.7 trillion and federal debt 90 percent of gross domestic product – nearly equal to Italy’s.

“Global capital markets are unlikely to accept that credit erosion,” Altman says. “If they revolt, as in 1979, ugly changes in fiscal and monetary policy will be imposed on Washington. More than Afghanistan or unemployment, this is President Barack Obama’s greatest vulnerability.”

The financial outlook for the United States is frightening. The size of the federal debt is projected by the CBO to increase by nearly 250 per cent over 10 years, from $7.5 trillion to a whopping $20 trillion.


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