BARACK Obama is refusing to shift on his ambitious – some say reckless – budget plans, despite warnings at the weekend from one of the US’s most respected forecasters that it will commit Washington to running unsustainable deficits and increase borrowing to more than $US9 trillion ($13.06 trillion) over the next decade.The latest warning from the non-partisan Congressional Budget Office will give more weight to a number of moderate Democrat voices in the US Congress, along with Republicans, who are openly questioning the popular President and telling him he needs to make changes.
We’re headed off a cliff and even though those who know are telling PrezBO that he has no clothes he is insisting that he does, but it is their failings that they cannot see them.
As for me, I just refi’d my house at 4.5%, and am taking enough from my equity to close out my credit cards. The S is going to hit the F and I don’t want to be blindsided by skyrocketing interest charges. I don’t know when it’s going to happen, if I did I would be very wealthy. I didn’t anticipate the problems of the last 6 months either. But with the Treasury buying their own bonds with money from a printing press, I think things could get very bad very quickly. I think we’re looking at stagflation that makes the Carter years look like boom times.
Frankly the Clusterf**k in Washington DC is not adding to my confidence. Luckily I’m in a position where it is highly unlikely that I would be laid off. But I figure that paying off my cards and hunkering down for a while until things become more clear can’t hurt.