"Apocalyptic pain" from an out-of-control debt could cause 18 percent unemployment and a massive contraction in the economy that would destroy the middle class, a leading Republican deficit hawk said in an interview that aired Sunday.
Sen. Tom Coburn, R-Okla., who recently issued a report on government waste, warned that the U.S. only has about three or four years to get its fiscal house in order or it could find itself facing austerity measures seen in Greece, Ireland, Spain, Portugal and earlier in Japan...
...The senator, who was recently elected to a second -- and he pledges -- final term in Congress, said he's not trying to scare anyone, but eliminating waste in the federal government's ledgers is imperative not just to prevent default but a massive implosion that he defined in catastrophic terms.
"I think you'll see a 15 to 18 percent unemployment rate. I think you will see an 8 to 9 percent decline in GDP. I think you'll see the middle class just destroyed if we don't do this. And the people that it will harm the most will be the poorest of the poor, because we'll print money to try to debase our currency and get out of it and what you will see is hyperinflation," Coburn said.
"If we didn't take some pain now, we're going to experience apocalyptic pain, and it's going to be out of our control. The idea should be that we control it," he said."
I'm thinking that the Senator will receive a stern talking to over these comments. Or maybe our elected representatives have decided to come clean because they really have very little choice. Maybe they figure it's better to start letting the truth out, bit by bit, to get the country ready for what's coming.
Either way, most won't listen and this will just get buried in the jacked up, pumped up cheer leading from the bankers boys in the White House, Fed and Treasury along with the patent medicine salesmen on Wall Street.
I think that Coburn is a bit optimistic in saying that we have 3-4 years to deal with this. I believe that the collapse is already under way and the snow ball of unmanageable debt that's about to roll over the economies of the world is picking up steam.
All we can do now is try to stay out of its way.