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IPFS News Link • Government

Hummel: The US Will Default On Its Debt

• The Business Insider
The flood of debt that the US is taking on in its efforts rescue to economy will combine with huge social insurance obligations--Medicare, MedicaidSocial Security--to create an unsustainable level of public indebtedness, economist Jeffrey Rogers Hummel argues in at length here. Faced with this mountain of debt, policy makers will have just two choices: repudiate the debt or engage in hyper inflation to monetize it, Hummel writes. And faced with that choice the Treasury will likely protect the currency and default on Treasuries. Here's the scary conclusion:

1 Comments in Response to

Comment by William1950
Entered on:

 Both parties could care less of the debt they are making and only about ways to buy voters.  Both parties need to keep the flow of money in for the next election and to do this require the protection of banks, oil and insurance companies.  They will do this by allowing banks to cut the amount owed on loans by one half across the board, on insurance by the setting up of universal health care, insurance paid straight to the companies from the federal mint, and oil by allowing the trades by a few to keep the oil prices up.

You, as the American who gets the bill will see inflation on all items while the wages are held at a very low value--as what has happened over the last thirty years, the end product will you8 will pay more taxes, relief more on government programs and watch as the fat cats vacation with the rich as you go down in flames.

Take Charge of America, vote middleamerican in 2010



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