Wednesday, March 9, 2011

"No Way Out" of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall

http://yhoo.it/fRbCqL
now after years of reckless spending, America’s debt level is nearing a breaking point and can no longer rely on foreign capital as a last resort.  “When a country reaches a certain debt level, confidence in that country’s ability to repay that debt becomes jeopardized,” says Gross, citing the work of Ken Rogoff and Carmen Reinhart in This Time Is Different.

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