The old financial rhetoric is no longer being accepted as consumers are growing tired of this dismal economy.
The ultimate blame for this bad economy and rising national debt and whether it lies with the Republican or Democrat party is no longer the main concern with the American people.
The idea that this government can spend what it wants while hoping to collect what it hopes tomorrow is worrying financial experts.
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.”
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.
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 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 what does the rest of the world think? Foreign investors seem to be nervous as regards doing business with America and showing this by charging higher interest rates when lending to this financially sick country.
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.
Of course, there are a few economists and financial analysts who strongly feel that this underwater finance problem can be fixed. I suppose this is where comparing the government’s actions to a Ponzi scheme would be somewhat incorrect.
The idea behind a Ponzi scheme is to borrow more money to pay off past investors or debts hoping to collect more money tomorrow. But it collapses when revenue ceases to come in devastating everyone involved.
The government, on the other hand, could possibly restore some fiscal sanity if and when these politicians choose to do so.
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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