US Stuck in Inflation-Causing Positions

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	US Stuck in Inflation-Causing Positions

JICWyllie

6-5-2009 6:54 AM

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tags:

1-bailouts, 1-hyperinflation, 1-policy, 1-stimulous, 2-consequences, 2-risks, 3-forecast, 4-us

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/8b9355e0-d124-48df-91d3-7287d33ac86a/956D4481-4274-420F-AC06-99B68B23EBA3/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://dailyreckoning.com/us-stuck-in-inflation-causing-positions/" href="http://dailyreckoning.com/us-stuck-in-inflation-causing-positions/" style="font-size: 11px;">dailyreckoning.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/us-stuck-in-inflation-causing-positions/"><P><STRONG>Americans are in the habit of spending huge amounts of money…with no intention of ever paying it back.</STRONG> Consumers did it in the ‘09s and ‘00s. Now the feds are doing it. The federal deficit for this year alone is four times last year’s record. <STRONG>The official US debt is exploding. Bill Gross says it will be 100% of US GDP within 5 years.</STRONG> Our guess is that it will reach that level even sooner.</p> <P>At 100% of GDP…even mainstream economists believe the situation will be irreversible…interest payments will be more than the US can afford. At that point, forced to borrow more and more just to keep up with the interest, the system will go into a Ponzi-scheme endgame.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dailyreckoning.com/us-stuck-in-inflation-causing-positions/"><P> The US won’t be able to pay off its debt…and it won’t be able to unload GM. Nor will the Federal Reserve be able to sell its holding of bonds onto the open market – without causing yields to rise.</p> <P>Even Ben Bernanke says that “long-term deficits threaten the financial stability” of the nation.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/956D4481-4274-420F-AC06-99B68B23EBA3/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>