Contents

 

Chapter 1: Overview

 

A Threat to the American Way of Life

Making America an Also-Ran

A Wake-Up Call

The Obama National Debt Bomb and the Sad Truth

Interest on the National Debt

Future National Debt Payments

A Trillion Here, a Trillion There

Europe Today, America Tomorrow

God Help Us Because Nobody Else Will

 

Chapter 2: The Federal Reserve

 

How Rate Changes Affect Debt Interest Payments

The Size of the National Debt

The Effect of Rate Changes on the US Budget

$1 Trillion, Please!

Fact or Fiction?

The Federal Reserve’s Effect on Debts and Deficits

The Cost of the Fed’s Low Rate Policy

How Does the Fed Manage Rate Changes?

A Free Lunch for the Fed?

The Conning of America

The Federal Reserve and Fighting Inflation

Fighting Inflation Ain’t What It Used to Be

The 1 Percent Factor, Part One

Not Just Possible But Probable

Is the Fed Locked In to Low Interest Rates?

The 1 Percent Factor, Part Two

Will Prosperity Heal the Problem?

Does GDP Growth Translate into Revenue Growth?

When Will Our Leaders Deal with the Problem?

 

Chapter 3: A Countdown to Detonation of the National Debt Bomb

Self-Destruction? The Facts That Prove the Theory

 

Chapter 4: Prediction: The Unites States Will Default on Its Debt, and the Federal Reserve Will Become Irrelevant

 

Is a Default by the United States a possibility?

What I Believe the Charts Say About…

The National Debt

The Government

The Federal Reserve

Owning Up to the Crisis

The Government’s Attitude Problem

The Uninformed American

Growing the Debt without Pain

Did the Federal Reserve Go Too Far?

The Creditworthiness of the United States

The Bogus Employment Picture and the Big 4 Percent

The Debt Interest Explosion

When Will Interest Rates Return to Normal?

The Path to Armageddon

Doing the Math

The Effect of Inflation

Business as Usual

The Race to Armageddon

Stalking a Wounded Animal

Uncle Sam: The Honeymoon is Over!

Rating the Rating Agencies

In Summary

 

Chapter 5: Deficit Spending—Big Time!

 

Troubled Asset Relief Program—TARP

American Recovery and Reinvestment Act—ARRA

 

Chapter 6: A Delayed Reaction?

 

Time Will Tell

Pressure on the Federal Reserve

The Pressure on the Rating Agencies

Trying to Define a Market Bubble.

A Bond Market Bubble?

How the Government Pressures the Credit Agencies

The Mindset of the Investor.

Discussing the Federal Reserve

Janet Yellen, the Chair of the Federal Reserve

President Barack Hussein Obama

Where Are We Headed?

The Best-Case Scenario

Option No. 1: The Balanced Budget Option

Option No. 2: Business as Usual

Who Gets Hurt in a Government Default

How High Is Too High?

The Path of Least Resistance

Summing Up!