Here is one scary article, which I have been wondering about with the U.S. spraying money like it grows on trees.
Contained within While bailing out, U.S. is digging itself deeper into debt are some very frightening questions about the federal deficit and insuring against a United States default on their debt:
It's a question debt-rating agencies are asking as they add the bailout to the soaring cost of Social Security and Medicare.
It's something investors are wondering as they have bid up by more than threefold the cost of insuring against a United States default.
Now right now, ratings agencies are not putting U.S. Treasuries into any downgraded status, but look at this quote:
"Obviously, if the government bails out the entire system, the credit of the government diminishes, and in my opinion Treasury bonds in the U.S. should already be rated as junk bonds," contrarian financier Marc Faber told the Australian Broadcasting Corp. three weeks ago. "I'm sure the U.S. government will eventually go bankrupt. Maybe not tomorrow, but as far as the eye can see, we will have deficits in the U.S. government, deficits of more than $1 trillion annually."
Now he can just be a major naysayer type, so let's look at this quote:
The bailout adds new pressure on America's debt grade, which has been a perfect "triple-A" for decades.
"None of this is positive for the rating on the U.S.," says Nikola G. Swann, a sovereign debt analyst with Standard & Poor's. "On the other hand, the United States has some unusual credit strengths."
The rest of the article attacks social security and medicare, which we know if the funds for social security were left alone, will be solvent.
So, one needs to watch out for those simply trying to deny social safety nets in the United States versus addressing the very real ballooning costs of Medicare.
Universal Single Payer Health anyone? Anyone see those systems breaking the banks of all of the other industrialized nations, or acknowledgment that the United States medical expenses far exceed any other industrialized nation?