Tuesday, November 18, 2008

U.S. in danger of defaulting on national debt in 2009?

Richard C. Cook, a former U.S. federal government analyst warns:

To try to fix the crisis through bailing out the system, we are now seeing in the U.S. and Europe levels of government borrowing that have not been experienced since World War II. The purpose is to recapitalize a financial system that has destroyed itself through its own greed and folly.

But all this does is defer the bill to future generations who have to pay the enormous compounded interest charges this borrowing entails.

Interest on the national debt in the 2009 federal budget is over $500 billion. (Last year's was $430 billion)

The situation is so bad that many people believe the U.S. may even be in danger of defaulting on its gigantic national debt sometime in 2009.

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