The Congressional Budget Office today said that the debt at the end of 2011 is going to be 70% of GDP and it will be 100% by 2021 then climb to 190% by 2035; if the present trend continues. Riots are breaking out all over Greece because their debt is at 105% of GDP. What can we anticipate happening if the current decline in our economy continues and our spending pattern remains unabated, those projections can suddenly balloon and the percentages can climb even more rapidly.
The Chairman of the Federal Reserve Bank Ben Bernanke today also gave his thoughts on the economy and he didn’t think that the growth rate will go higher than 2.5% though earlier projections were as high as 3.5% for 2011. The Fed is going to keep interest rates at near zero and there won’t be any more QE3, which I was dreading that it would happen but thankfully did not.
Our country is coming to a critical juncture in our history of whether we shall remain a super power or is it going to go into a steep decline; I wish that it would be the former. I can see no reason that my wish will be fulfilled unless Obama does not get reelected in 2012.