I list below posts I have written on this blog about the US debt situation. As pessimistic as I have been, apparently the debt situation for the nation is appreciably worse than even I thought. Hattip to Ed Morrissey at Hot Air. Tax revenues to the IRS are down 44% from where they were last year. Previous debt projections, as Ed Morrissey points out, were based on the assumption that the loss to GDP this year would be -1.2%. With GDP contracting at -6% during the first quarter on an annual basis, the economy will have to show a lot of growth for the remainder of the year for the target of a -1.2% GDP contraction to be reached. I very much doubt if the GDP contraction will be much better than -2.5% and could easily be far worse.
In the meantime, hattip to Instapundit, the Chinese are concerned about the Federal Reserve purchasing US Treasury bonds. No doubt that is one item on the table for discussion as Treasury Secretary Geithner attempts to convince the Chinese to continue buying US debt. Well I hope the Chinese will continue purchasing our debt, because long term Treasury bond sales seem to be sending out danger signals. A selling spree in Treasury bonds yesterday is another indicator of instability in the sale of US debt.
I think we are entering a perfect storm of exploding debt and an increasing inability to borrow on good terms. The economic day of reckoning approaches and I fear, if present trends continue, that Americans will face the devastating economic impact of eventual debt repudiation.
7. Debt Sun
9. Red Ink
10. Of Tea and Taxes
11. Democrat Economy
13. Pension Wipeout