Monday, May 10, 2010

U.S. Debt Shock May Hit In 2018, Maybe As Soon As 2013: Moody's

I wish I knew enough about economics to say whether this was propaganda or not, because I personally believe it's going to hit far sooner than that. -

    Spiraling debt is Uncle Sam's shock collar, and its jolt may await like an invisible pet fence.

    "Nobody knows when you bump up against the limit, but you know when it happens it will really hurt," said fiscal watchdog Maya MacGuineas of the Committee for a Responsible Federal Budget.

    The great uncertainty about how much debt is too much has tended to make fiscal discipline seem less urgent, rather than more. There is no obvious threshold beyond which investors will demand higher real yields for holding U.S. debt. Vague warnings from ratings agencies about the loss of America's 'AAA' status haven't added much clarity — until recently.

Read all of it.