The US keeps printing extra dollars, but what are the actions being taken to reduce the nation's debts? Alan Greenspan warns that the ballooning debt levels could lead to another crisis at the bond market. Together with the simmering race to weaken national currencies makes me very worried about the future economic situation.
http://abcnews.go.com/Business/wireStory?id=12144826He said the deficit, which hit $1.3 trillion this year, may begin to frighten the bond market, which could undermine the recovery and push the economy back into recession.
"The big, serious problem is whether or not the outlook for the longer-term deficit spooks the bond market to a point where long-term interest and mortgage rates move up very sharply," said Greenspan. "If that happens, that will cause the double dip."