Frightening Fodder

Today MSNBC had this to say about the Congressional Budget Office's (CBO) report;

CBO forecast: frightening fodder for both parties

Budget monitor warns of debt increasing the probability of a sudden fiscal crisis

The big headline number from Wednesday’s Congressional Budget Office report is a jolting shot of bad news: a budget deficit this fiscal year of close to $1.5 trillion, or 9.8 percent of gross domestic product (GDP).

That’s nearly as big as 2009’s shortfall, which was the highest in nearly 65 years. The $1.5 trillion deficit would be a nominal record, but not quite as big as the 2009 deficit when measured as a percentage of the economy.

More bad news: CBO’s forecasters don’t see employment returning to anything like normal before 2016.

The new report uses the word “unsustainable” to describe deficits and debt in the years ahead.
It warns that interest rates — which it says are “very low by historical standards” right now — will go up and will drive up the cost of paying off the debt. Interest payments on the debt “are expected to skyrocket.” CBO projects that the government’s yearly net interest spending will more than triple between 2011 and 2021.

As if that weren’t frightening enough, the CBO warns in unusually stark language — as it has before — of the potential for a sovereign debt crisis. The report uses the words “Greece” and “Ireland” only once but it spells out a scary scenario in detail.

The growing debt, it says, “would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget and the government would thereby lose its ability to borrow at affordable rates.”

It warns that “as other countries’ experiences show, investors can lose confidence abruptly and interest rates on government debt can rise sharply and unexpectedly. The exact point at which such a crisis might occur for the United States is unknown, in part because the ratio of federal debt to GDP is climbing into unfamiliar territory. ... There is no way to predict with any confidence whether and when such a crisis might occur and no identifiable tipping point of debt relative to GDP.”

DID YOU CATCH THAT?? "SUDDEN FISCAL CRISIS" and "LOSE CONFIDENCE ABRUPTLY"? We have been saying all along that paper money is based 100% on confidence...and when it dries up....the money will be worthless.

Holy collapse! We have been saying for quite sometime that Iceland and Greece are foreshadowing of what WILL be coming for the U.S.

See it here; http://www.msnbc.msn.com/id/41276533/ns/politics-capitol_hill/

Something wicked is coming folks. I hope and pray that the Father sets his eyes on the bride and decides in His mercy to rapture us up to the wedding feast BEFORE that abrupt loss in confidence comes for the U.S. currency.