US senator warns of ‘financial meltdown’ risk

US senator warns of ‘financial meltdown’ risk

I just came across this (I searched and found nothing forgive me if it's been posted), and seriously I'm glad someones admitting that there is going to be a financial meltdown but umm hasn't that already begun? Not to mention, listen to this...

The US is heading for a debt-driven “financial meltdown” within five to seven years, according to Judd Gregg, the outgoing Republican senator for New Hampshire.

In a robust and at times testy video interview for the Financial Times’s View from DC series, Mr Gregg also complimented China for showing rising alarm about the US’s mounting levels of public debt.

Within 5 to 7 years?! Are you kidding me?

“We have had China say that they are looking for other places to put their reserves and that is probably a smart decision on their part,” said Mr Gregg, who will not seek re-election in November. “So the warning signs are pretty clear and the path is unsustainable and, at this point, unless we take different actions, unavoidable.”

Alright, something sensible coming out of this mans mouth now...

But the senator, who was the most high-profile Repub­lican invited by Barack Obama, the president, to join his administration last year, an offer Mr Gregg accepted and then turned down, said he doubted that the two parties would get together to tackle it.

Last month 16 Republicans and 37 Democrats voted to establish a fiscal commission – seven votes short of what was needed to prevent a filibuster.

Mr Gregg also played down prospects for the non-statutory fiscal commission that Mr Obama set up by executive order last week. “It was just an edict that came from a Democratic president,” he said, adding, that “it’s the only game in town right now”.

Mr Gregg also disputed non-partisan economic studies that showed last year’s $787bn (€585bn, £520bn) stimulus cushioned the impact of the recession. “The facts are wrong,” he said. “I can understand how a Keynesian would make that argument. I find them absurd on their face.”

Read the full article here

The beginning of the article is still bugging me... 5 to 7 years?! Common!!!

Like I said the economy is collapsing as we speak, AS I TYPE THIS! It's no secret and I understand that Mr Gregg made some good points, but overall I think he's off on his perspective.

China could demand their money any day, any second, at this point in time. We are completely bankrupt. The only reason the 'system' seems to be working still is because the printing machines are still throwing out paper money like it's free... oh wait, it is! And it's worthless!

Edit to add: As I hit "post" I looked at my own thread title and realized it had the work "risk" at the end. Risk?! Is he, or anyone who is willing to say risk serious? Critical mass must be a joke and untrue because it seems to me people should know about their countries f'ed up economy and yet they seem to think because Obama decided to say in the State of the Union Address that we're going to rebound, we are rebounding and whatnot that everything is just A-OK! Well, sorry to inform those who are following Obama's words, word for word, but he is bull$hitting you, and trying to bull$hit everyone as well. Too bad we here at ATS especially are smarter than that. Yes... smarter than that

[edit on 26-2-2010 by highlyoriginal]

Risk? Nah, its more towards the side of "given". I'm pretty sure we have past the point of no return, and even this senator saying "a risk in 5-7 years" is blindly optimistic.

reply to post by LegalizeFreedom


Blindly optimistic... couldn't have said it better myself.

I mean really think about this. Let's say the $hit doesn't hit the fan in the next couple years, a new president is nominated and actually starts to fix the economy. Realistically speaking that will never happen, but even if it did, it still would be impossible, utterly impossible, to fix the entire economy within 5-7 years. Take off 2 years until the next presidency, that means 3-5 years.

Unless China keeps accepting our worthless paper and our gold plated tungsten bars I see no way of paying off our dept to them, or anyone for that matter.

I wanted to add this article it goes along with the article in the OP - it is from April of '09 but like I said it goes hand in hand with the article above.

Let me offer just four of the many good reasons I could give for why "doing the math" -- right now -- is still the best strategy for halting the global economic meltdown threatening us.

Read the article below to see the "math" - LA Times: Global Meltdown Rule No. 1: Do the math

[edit on 26-2-2010 by highlyoriginal]