So Nancy Pelosi's first budget was $162B in the red, her second was something like $406B in the red and this next one is supposed to be around $1T (that's right, one trillion dollars!) in the red. Who has that kind of money to lend to the government? And it's not just our government, it's governments all around the world who are having to borrow like mad. Dittos for states and counties and cities.
I'm really scratching my head on this one and wondering what to do with my money because of it. It seems to me that this level of borrowing is going to utterly dominate the financial world in the next year. I can only see two alternatives. Interest rates may go way up as the demand for money will outstrip the supply. The other possibility will be wild inflation as the Federal government prints money to make up the difference.
Fortunately, these kinds of developments don't happen overnight and one ought to be able to see them beginning. As I read through the financial blogs, I'm keeping my eyes open for just which way this is going and will continue to post updates and links here.