A large throng of Americans are looking at the bottom-line as far as this country’s finances are concerned no longer accepting Washington’s old rhetoric.
Truth-be-told, more and more people no longer care if the rising debt is the fault of Republicans or Democrats; whether the blame is due to the Bush tax cuts or the Obama stimulus.
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.
Many were surprised to hear Bill Gross, a founder of the investment giant Pimco, comparing this economy fiasco with that of a Ponzi type scheme.
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.
“In order to pay the interest and the bill when it comes due, we’ll simply have to issue more IOUs. That, to me, is Ponzi-like,” Gross has said. “It’s a game that can never be finished.”
And how is the fiscal health of this nation? The national debt which now totals 9,377,204,236,563.68 as of January 13, 2011, has become the major thorn in every politician’s side no matter what party they are a part of.
However, the true accumulative debt actually comes to $14,007,216,975,377.59 when you add $4,630,012,738,813.91 in Intragovernmental Holdings to the public debt of nine plus 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 of course this assumes that there are no new recession scenarios, no new wars or financial crises on the horizon.
Would this be the ultimate doomsday scenario? Call it what you may. But foreign investors are getting nervous and ‘demanding higher interest rates to continue bankrolling American profligacy’ as one journalist put it.
When these rates go up and they will, the United States will have to borrow more and more simply to pay the interest on its debt.
Although some feel this may send this nation into a downward spiral as regards our already sinking economy, others feel this problem can and will be fixed thus nixing the Ponzi type comparison and eventuality.
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.
And if politicians get together and move forward with much needed solutions, many feel some type of fiscal sanity might be in place.
Many felt Bill Gross acted prematurely at first but the his concern is now shared by millions of consumers who are watching this nation’s financial strength slowly disappear. Perhaps Washington may have a change of venue and find a solution to cutting this massive deficit.
To learn more about a St Louis mortgage, stop by Floyd J. Tapia’s site at www.LibertyLendingConsultants.com/St-Louis-Commercial-Loans where you can find real tips about securing a St Louis loan or principal reduction for your home or business. We also invite you to call Floyd at 314-334-0210.
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