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U.S. debt soars to 90% of GDP
Posted By -NO AUTHOR- On 05/31/2010 @ 9:31 pm In Front Page | Comments Disabled
Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Red Alert subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of “The Late Great USA,” a book about the careful deceptions of a powerful elite who want to undermine our nation’s sovereignty.
U.S. debt has hit 90 percent of gross domestic product, or GDP, the level at which economic growth traditionally begins to slow, Jerome Corsi’s Red Alert reports.
“What is frightening is that U.S. debt is rapidly beginning to approach the same percent of GDP that has plagued European Union countries like Greece, with the same likely results – fiscal bankruptcy that requires continued borrowing for the government to remain in business and the risk of default that demands risk premiums to be paid for the borrowing needed to pay for the ever-expanding social welfare state,” Corsi wrote.
“Debt can get you in trouble,” writes Bill Gross, the same man at Pimco who admits to being responsible for lending to governments and business what amounts to around $1 trillion in debt.
In a commentary published on the Pimco website, Gross warned that total credit market debt, including government, corporate and personal debt, was reaching 360 percent of GDP, a clearly unsustainable level.
“Granted, sovereign debtor nations are now saying all the right things and in some cases enacting legislation that promises to halt debt burdens,” he observed. “Not only Greece and the southern European peripherals, but France, the U.K., Japan and even the U.S. are sounding alarms that might eventually move them toward less imbalanced budgets and lower deficits as a percentage of GDP.”
Yet, Gross is worried that it may be too little, too late.
“Still, credit and equity market vigilantes are wondering if in many cases sovereigns haven’t already gone too far and that the only way out might be via default or the more politely used phrase of ‘restructuring.’”
To learn more about the skyrocketing U.S. federal debt, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.“
Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
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