Obama's Great American Ponzzi Scheme

From James Quinn:

In the time it takes to say Audacity of Hope, we’ve added $25,000 to the National Debt. There are many pundits who say the National Debt doesn’t matter. We are only paying 3.4% on our 30 Year Treasuries and there is always enough demand. The dollar continues to be steady versus the Euro. Government debt as a percentage of GDP was 122% during World War II, versus only 78% today. All of these statements are true, today. On March 1, 2008 I could have said that the American banking system was sound. I would have appeared to be right. Two weeks later Bear Stearns collapsed and the downward spiral of our worldwide financial system accelerated out of control. Are these reasonable questions to ask?

1. How long will foreign countries fund our rapidly accelerating deficits for a 3.4% return which will be wiped out by a slight decline in the USD?
2. Will foreign countries with their own economies contracting and pouring billions into domestic stimulus even have the funds to invest in U.S. Treasuries?
3. Is there a tipping point when Bernanke has printed one too many dollars? If there is, you can be sure he won’t see it coming.
4. When government debt reaches 110% of GDP next year, will we be in better or worse position as a nation than we were in 1945 as the only remaining power in the world?
5. How do you solve a $53 trillion unfunded liability problem while tripling your National Debt in the space of 10 years?

The answers to these questions will determine when the great American Economic Ponzi Scheme collapses. It is only a question of timing if we continue on the current fiscal path. As we lay in our beds watching American Idol and pondering whether Britney Spears is a good mom, our beds are burning.