The writer is chairman of Evercore Partners and was deputy US Treasury secretary under President Clinton
America's disastrous debt is Obama's biggest test
By Roger Altman
Published: April 19 2010 23:05 | Last updated: April 19 2010 23:05
The global financial system is again transfixed by sovereign debt risks. This evokes bad memories of defaults and near-defaults among emerging nations such as Argentina, Russia and Mexico. But the real issue is not whether Greece or another small country might fail. Instead, it is whether the credit standing and currency stability of the world's biggest borrower, the US, will be jeopardised by its disastrous outlook on deficits and debt.
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. More than Afghanistan or unemployment, this is President Barack Obama's greatest vulnerability.
Now, this admin will complain about what they inherited, and getting out of the ditch too slowly to suit the people who got them into it, blah blah yadda yadda... and IT DOESN'T MATTER ANYMORE. It's YOUR RESPONSIBILITY NOW. This is the job YOU wanted. This is the responsibility YOU sought. Fulfill it or STFU with the complaints of a type we can hear from any 8 year old.
Before we collapse, or trigger massive petrifying inflation which will erode/obliterate savings and investments of lifetimes, our political sovereignty will be utterly perturbed from our own benefit by other nations, and none of them will be ISRAEL
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