The Great Debt Crisis Sets In

  • Will take place on December 31, 2008
  • Predicted on June 30, 2008
  • Countdown Expired
  • Votes 5
  • Chance 80.0 %
  • Influence 125

By New Years Eve, the US Federal Debt will have hit $10 TRILLION. The enormity of this sum will increasingly burden the domestic economy.

This debt will continue to be monetized by the Federal Reserve in low-interest rate environments.

The low-interest rates will be necessitated, the Federal Reserve will argue, to prevent continued foreclosure woes, among other problems. The Democratically-appointed Treasury Secretary will advocate a king-dollar scenario, but Fed will remain firm in keeping rates low. Effectively, the Federal Reserve Chairman and Treasury Secretary will reach an impasse.

The Federal Debt will actually begin to "deflate" - adjusting downward for CPI - while commodities, and oil, in particular, will continue to inflate. Most Americans will have paid for Christmas presents using plastic, and will have sunk further in debt.

Uncertain times, especially in regard to Iran/Iraq, will trash consumer confidence.

Where

United States LAT: 39.76 LONG: -98.50 RADIUS: 911

By

The Federal Government

Semantic Analysis

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Comments

The reason the Fed can't raise rates is fear of collapsing the economy. At the same time resources of all types not just oil will be stretched to their limits. Due to population explosion of the last 100 years. We are being squeezed from all fronts.

Does anyone know how it will end?

Michael Williams

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