“End of the Road” by Tim Delmastro doesn’t follow the accounting route in much detail, but explains the spiraling debt and deficit in terms of fiat currencies. Old hat for this forum, but I’m sure will still make one or two re-think their gold positions. How much faith we can put in these predictions I don’t know, as there were no counter arguments put forward. That to me is always suspect. I am not an economist, but you don’t have to be one to know by now that bubbles don’t solve debt problems, they seem to make them worse.
Another major problem is explaining the problem, which you need to do if you’re going to provide a fix. “We’re in debt up to our eye balls, the US economy will crash, taxes must go up, and costs must be slashed”. So everyone gets it, but you are still left with a divided government and special interests. Introduce a parliamentary system?
How likely is a depression just after a major recession? Probably low, but the likelihood of a major (economic) event happening that could tip the balance in the next ten years is probably high.
