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By Floyd J. Tapia
The old financial rhetoric is no longer being accepted as consumers are growing tired of this dismal economy.
The larger population of concerned voters no longer care if the out-of-control rise in debt is the fault of Democrats or the Republicans.
To go one step further, there are those including one man who is deeply concerned that Washington’s spending with hopes of collecting tomorrow is way out of hand.
Bill Gross, a founder of the investment giant Pimco, describes this dying economy closely to a Ponzi scheme even in a subtle way.
His concerns has surmounted to the point that he has vocally made it clear that he has sold some of his U.S. government bond and bought foreign bonds all because of Washington’s national debt rising at unbelievable rates.
And when you consider that the government will most likely have to borrow more money to pay all the interest and eventually the principal forging this debt, you cannot help but to compare this to the close characteristics of a Ponzi scheme.
Looking at this nation’s fiscal health, the national debt which now totals 9,377,204,236,563.68 as of January 13, 2011, is rapidly becoming a dominant political issue in Washington as well as across the country, and certainly not just among the “tea party” crowd.
But that amount is just the public debt this nation owes. When you add in the Intragovernmental Holdings which currently totals $4,630,012,738,813.91, the accumulative amount comes to $14,007,216,975,377.59 as in fourteen trillion dollars.
It will no doubt take high-level bipartisan actions that must look for immediately ways to start reducing this massive deficit and move the country forward economically so to say.
In fact, a report by the Congressional Budget Office states that it expects this debt to reach $20 trillion over the next decade. This does not sit well with St Louis mortgage owners.
And this assumes that there are no new recession-type blips, no new wars or military actions and no new financial crises on the horizon.
And it is quite apparent how nervous the rest of the world is by their lending money at higher interest rates when bankrolling America’s tremendous debt as most experts would agree.
In turn, the United States government will have to borrow more money in order to pay off the interest due on this huge loans from foreign countries.
This in turn may deliver a death-dealing blow to our once thriving nation leading to an unparalleled downward spiral for our already sinking economy. But there are those who feel this can be fixed.
But we all know that when a Ponzi scheme collapses, it does so because there are no ‘new suckers’ offering money that can be used to pay off earlier investors.
The government, on the other hand, could possibly restore some fiscal sanity if and when these politicians choose to do so.
But the sad thing is, this nation’s cynicism and concern is still running rampant. In order to stop this runaway budget deficit, Washington must act now with equal goodwill. We shall watch this closely over the next few years.
About the Author: If you and your family want the best
St Louis finance
, then visit http://www.LibertyLendingConsultants.com/St_Louis_Home_Mortgage to get the best St Louis commercial lending or principal reduction advice on
St Louis mortgages
for your home or business. Give Floyd a call at 314-334-0210 or 877-334-0210.
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