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Former Clinton Aide, Roger Altman: Massive Debt Could be Disastrous

Roger Altman was Bill Clinton’s deputy US Treasury Secretary who now serves as the chairman of Evercore wrote at the Financial Times regarding the massive debt.

Image/QuinceMedia via pixabay

He begins:

America’s fiscal picture is even worse than it looks. The non-partisan Congressional Budget Office just projected that over 10 years, cumulative deficits will reach $9,700bn and federal debt 90 per cent of gross domestic product – nearly equal to Italy’s. Global capital markets are unlikely to accept that credit erosion. If they revolt, as in 1979, ugly changes in fiscal and monetary policy will be imposed on Washington.

This is a former Clinton aide telling Americans that the yearly deficit will soar to nearly $10 trillion in a single year and on to $20 trillion after that.

Altman:

Why is this outlook dangerous? Because dollar interest rates would be so high as to choke private investment and global growth.

The first solution, which he contends should mimic the Clinton era with a Newt Congress: less spending, balanced budgets, etc…

Altman says “Ideal” and I predict – not likely.

Secondly alternative:

The second possible course is the opposite: government paralysis and 10 years of fiscal erosion. Debt reaches 90 per cent of GDP. Interest rates go much higher, but the world’s capital markets finance these needs without serious instability.

Translation – America slowly dies.

Lastly, which Altman states is most likely citing the failures of the Carter administration: large deficits, the dollar collapses and the nightmare becomes reality.

Altman echoes the sentiment we share on here on DOB: President Obama will not compromise his political re-election to do what is necessary: cut spending, cut taxes, balance the budget, stop printing money etc…

That worse case scenario is NOT rhetoric for the Tea Party members, right-wing talking heads, FOX news or just me.

This is from a high ranking former Clinton aide – maybe folks will listen to him.

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