RE:RE:Fitch downgrades the US rating August 2 – Bloomberg (Christopher Anstey): “Two former US Treasury secretaries urged Washington policymakers to address the country’s long-term fiscal challenges before they become insurmountable… ‘Our fiscal trajectory is concerning,’ Hank Paulson said... ‘We’re a rich country, and we’ve got time to deal with it. But we need to do some things in the next few years to change that trajectory.’ Paulson’s successor as Treasury chief, Timothy Geithner, said ‘you want to move the system to act before it’s late and hard.’ Asked whether it would take a crisis before Washington did address its borrowing needs, he answered, ‘I hope not.’”
My Comment: It's too late. I don't think we have a few years to address the debt. We are facing a recession soon and that means lower revenues and higher spending which will mean the deficits will explode higher. The debt cannot be addressed in a recession and there's no resolve by either political party to reduce spending. We are fast approaching a debt trap that spirals out of control.