Doomsday Prophesy: 2011 Will Be Even Worse Than 2010
By Derek Thompson
In the first few months of the 2011, the federal government will run out of cash. We will max out the federal credit card, and Congress will refuse to open another line of credit. Treasury won’t have enough money to both run the government and pay back our lenders.
The implications will be dramatic, and possibly cataclysmic. We will stop funding up to 40 percent of all federal government activities. While the Treasury will feel required to pay back international investors to calm fears of a historic default, we won’t have enough money to pay for Social Security, Medicare, homeland security, and the keep the federal government running. Workers will lose jobs. Companies would lose contracts. Businesses will lose confidence. Both inside and outside the United States, panic will proliferate. Global markets will roil and the US economy will tip from slow growth back into negative growth, double dipping into recession.