Sorry for the lack of posts, but I've been working on another project recently.
According to the United States Congressional Budget Office, if Barack Obama would have changed nothing after coming into office, by 2019, the US debt obligation would have amounted to 42% of annual GDP. How much is 42% of annual GDP? Roughly 5,991.13 Billion dollars, this (shockingly) is in-line with historic norms. However, the CBO goes on to say that after the past 6 months of spending, and the inclusion of Barack Obama's proposed budget, by 2019 the US will need roughly 82% of GDP to service its debt load.
Just a quick reality check... doesn't a bank want a buyer to have a below 40% debt load in order to qualify for a mortgage?
The only reason we can get away with this is because of the US Dollar's position as the world reserve currency. However, China's talking about replacing the USD as the world reserve currency. Common sense says that something has to give.
Source: http://www.financialsense.com/fsu/editorials/cnc/2009/0605.html
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