By Tim Connolly
The U.S. owes over fourteen trillion dollars - that's over $90,000 owed by every U.S. taxpayer.
In August 2007, I predicted on our radio show that a major liquidity crisis was about to hit the U.S. and have a major impact on the market. I am beginning to see data that suggests the possibility this condition may recur, and the Federal Reserve $600 billion quantitative easing (QE2) may trigger it. It is hard to imagine how we have gotten ourselves into this position. While the USA has a population of 310,700,000, remember, less than half the population actually pays taxes. Taking this reality into consideration, every current taxpayer owes nearly $100k of future earnings towards the national debt. It is a truly scary situation that must get addressed before we face an international bond crisis of epic proportions. We may find ourselves unable to sell our treasury debt at reasonable rates, and we could even lose our cherished AAA credit rating. [more...]