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The Great Debt Crisis Sets In

By New Years Eve, the US Federal Debt will have hit $10 TRILLION. The enormity of this sum will increasingly burden the domestic economy.

This debt will continue to be monetized by the Federal Reserve in low-interest rate environments.

The low-interest rates will be necessitated, the Federal Reserve will argue, to prevent continued foreclosure woes, among other problems. The Democratically-appointed Treasury Secretary will advocate a king-dollar scenario, but Fed will remain firm in keeping rates low. Effectively, the Federal Reserve Chairman and Treasury Secretary will reach an impasse.

The Federal Debt will actually begin to "deflate" - adjusting downward for CPI - while commodities, and oil, in particular, will continue to inflate. Most Americans will have paid for Christmas presents using plastic, and will have sunk further in debt.

Uncertain times, especially in regard to Iran/Iraq, will trash consumer confidence.