PLEASE tell me why I should not be scared to death.

The two articles below are certainly OPINION pieces but they sure do strike a bad future for our economy.

The first is from a well known economist, who admittedly has a "horse in the race"......and from Bloomberg...

"With California mired in a budget crisis, largely the result of a political impasse that makes spending cuts and tax increases impossible, Controller John Chiang said the state planned to issue $3.3 billion in IOU’s in July alone. Instead of cash, those who do business with California will get slips of paper.

The California morass has Democrats in Washington trembling. The reason is simple. If Obama’s health-care plan passes, then we may well end up paying for it with federal slips of paper worth less than California’s. Obama has bet everything on passing health care this year. The publicity surrounding the California debt fiasco almost assures his resounding defeat."

http://www.bloomberg.com/apps/news?p...d=aTKrn1jUJwdE


The second article comes from the UK, and as I said, both of these articles are slanted a bit in my opinion and that is why I would love to hear the TOTV resident economic folks give comments.

"The US economy is lurching towards crisis with long-term interest rates on course to double, crippling the country’s ability to pay its debts and potentially plunging it into another recession, according to a study by the US’s own central bank "

http://www.telegraph.co.uk/finance/f...to-double.html