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Sunday, 6 December 2009

Not just a silly RULE, but a LAW.............from Rico

Greenspan-Guidotti: Not just a silly RULE, but a LAW like gravity!

Think about THIS for a minute. Within the next 12 months the US Treasury will HAVE to refinance (roll-over) $2 trillion in sjort-term debt. That does not include and additional deficit spending, which is already at $1.5 trillion.
- HOW in the world can the US Treasury borrow $3.5 trillion in only a year? [That's about 30% of our total GDP.]

On the Greenspan-Guidotti Scale (from a 1999 academic paper they authored) the US is a guaranteed "default."
- Without hard currency reserves equal to 100% of short-term debt (per G.-G.) the US is likely to have a currency crisis within the next two years.

Only a Kool-aid infused monkey can fail to see the implications.

1 comment:

richard mcenroe said...

"sjort-term" debt? Do we have to refinance in Kroner?