ECONOMY WILL FAIL BECAUSE OF DEBT - NEW YORK TIMES

The New York Times is running this story on the front page. The problem is becoming so critical that even the Times, the paper that will distort any news to benefit the Obama administration, is being forced to send out SOS calls. We are facing collapse; regardless of the happy news about job expansion next year and the DOW gaining ground. This collapse is not avoidable. Participation will not be voluntary.

Plan and prepare for the worst. Pray for the best.

"The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.’s on terms that seem too good to be true.

But that happy situation, aided by ultralow interest rates, may not last much longer.

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages."

New York times