We use cookies to enhance your experience when using this site. If you continue using the site, we will assume you are happy with this. You can change your settings at any time following the instructions here.

Tuesday, January 1, 2013

Fiscal crisis averted? Think again--

If you think the deal on the "fiscal cliff" solves anything long term--you are wrong:


". . . Let’s start with the problem: the budget deficit. Under current policy, the federal government is spending vastly more than it is collecting in tax revenue. And that will be true for the next several decades, thanks largely to the growth in entitlement spending that will occur automatically as the population ages and health care costs increase. As a result, the ratio of government debt to the nation’s gross domestic product is projected to rise, substantially and without an end in sight. That can happen for a while, or even a long while, but not forever. At some point, investors at home and abroad will start questioning our ability to service our debts without creating steep inflation. It’s hard to say precisely when this shift in investor sentiment will occur, and even whether it will strike in this president’s term or the next, but when it does, it won’t be pretty. The United States will find itself at the brink of an unprecedented financial crisis. . . " (source: NYTimes.com)

more news below







markets - Google News

fiscal cliff - Google News

Eurocrisis - Google News

debt crisis - Google News

ECB | US dollar (USD) - Euro foreign exchange reference rates

Twitter

ieeuu.us

Eurostat News releases

Forbes - Markets

Bank for International Settlements

Titulares RSS del sitio del FMI

Fils RSS du site FMI

What's New