REO Capital - Predicts Debt Crisis - Obama says No Big Deal

Obama - Says No Big Deal

There has been no shortage of dire warnings about the mounting US national debt, but President Obama is now offering a different assessment: no big deal.

“We don’t have an immediate crisis in terms of debt,” President Obama said in an exclusive interview with George Stephanopoulos for “Good Morning America.” ;

“In fact, for the next 10 years, it’s gonna be in a sustainable place.”It’s an assessment that will throw cold water on the latest attempt to achieve a so-called grand bargain to reduce the deficit. After all, a grand bargain would require excruciatingly difficult decisions for both sides — for Republicans, it would mean raising taxes, and for Democrats, cutting future spending on cherished programs like Social Security and Medicare.

If there is no crisis, why would either side do it? So, what happens if this latest effort to reach a deficit agreement falls through? ;

Once again, the president’s answer was, essentially, no big deal!!!

As a two Senator from Illinois and previous Law Professor this President has no concept of Economic Principles or how to run this great country we once knew as America!

 If Obama can not see that we have an Debt Crisis and he is ignorant  to our countries debt crisis, insisting "its no problem" then we should all revolt and Impeached this President before we will end up like Greece!

"Soon you're going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it."  , despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt on its way to $20 trillion and the Fed's never ending money printing. ;

Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level. According to Schiff, these numbers are unsustainable. And the Fed has no credible "exit strategy."

Eventually interest rates will rise... the feds will not be able to continue to support the Treasury Bond Market by buying bonds at $85 billion dollars per month and when the feds stop buying & raise interest rates which is in the near future, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone. The crisis is imminent,"  "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."

"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception," he said. "The Fed knows that the U.S. economy is not recovering," he noted. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode." Then we will see how popular the Obama Administration will be with the American public?

John Denes

CEO

REO Capital, LLC

johndenes at reocapitallc.com