Peter Ferrara penned a recent article over at the American Spectator. We think it’s a brilliant analysis of the current and future economic situation. To be completely honest, we think it’s brilliant because it agrees with everything we’ve been saying.
Unfortunately, he foresees an America that’s teetering on the edge of another recession – one that will usher us into an economic death spiral in which our debts overwhelm our ability to continue borrowing:
That is bad enough for a puny, insignificant nation like Greece, where riots increasingly leave the government dysfunctional, with the EU likely to take over the country effectively. But what is the effect when that happens to the world’s supposed superpower? America financed World War II by running up our national debt to its all-time record as a percent of GDP (for now). But that won’t be possible when we have already run ourselves into national bankruptcy.
Our potential military enemies will be quite aware of this historic vulnerability of America. Just as Reagan brought us Peace through Strength, Obamanomics will be inviting War through Weakness. With a 2013 American economic collapse that will also disable the entire West, the world’s uncivilized rogues from Russia, to China, to North Korea, to the Middle East Islamists dreaming of renewed world conquest, will all be tempted probably beyond resistance and reason to strike. They don’t need even to attack the homeland to deal America a decisive defeat. They can just decimate our suddenly overwhelmed allies, from Israel to South Korea to Taiwan to our allies in the Middle East, let alone some even in Europe.
This is one of those unfortunate situations in which we will get absolutely no joy from being able to say, “I told you so.”
Source: American Spectator