S.O.S. — Economist Warns: Coming U.S. Bond DefaultBy: Gene J. Koprowski |
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| The U.S. may have to default on its debt payments after 2019, writes economist Robert Samuelson.If the deficit spending continues on the current path it will consume 82 percent of gross domestic product within a decade. There will be no wiggle room for tax cuts, and spending cuts may be politically unpalatable, he surmises.
“The Congressional Budget Office reckons the Obama administration’s planned budgets would increase the debt-to-GDP ratio from 41 percent in 2008 to 82 percent in 2019. Higher interest rates would aggravate the debt burden,” writes Samuelson in The Washington Post. Anticipating higher interest rates, the CBO estimates annual interest payments on the federal debt at $799 billion in 2019, up from $170 billion today. Click here to read more. |
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Just one year ago, would you have believed that an unelected government official — not even a Cabinet member confirmed by the Senate, but simply one of the many “czars” appointed by the President — could arbitrarily cut the pay of executives in private businesses by 50 percent or 90 percent?
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