I know nothing about economics but I do the bills in my house and I know that when money's tight and our debt is rising it means we eat pasta. And we don't borrow more money as a solution. This spending spree Washington D.C. is on could truly be ruinous. The Other McCain has more. And he's not as optimistic as me:
Saw this yesterday and didn't blog about it, but what if Treasury notes become junk bonds?Continue reading>>>
The US government has had a triple A credit rating since 1917, but it is unclear how long this will continue to be the case.
Go talk to some people who know a bit about the bond market, and see how they think the global investor class -- U.S. debt is a commodity traded globally -- will react to the prospect of still more deficit spending piled on top of all the deficit spending for the $152 billion "stimulus" in May, $350 billion for TARP I, and now $789 billion for more "stimulus." Another $350 billion for TARP II? Oh, they're going to love that.