David Stockman and Moody's Warn About U.S. Budget Deficit, National Debt

David Stockman, former Budget Director under the Reagan administration, thinks the U.S. is "borderline" bankrupt and bond vigilantes are "just around the corner". The national debt hit $14 trillion in January and we're running a "$100 billion deficit" a month, he said. The national debt is expected to hit the debt ceiling in a few months. Watch the Bloomberg clip after the jump.
"One of these the days the global bond market or currency market is going to have a huge upset, a Greek moment, and then it will be too late because of the massive scale of what we're doing."

"It's not a matter of defaulting, it's a matter of what we have to pay to the global bond market in order to carry and add to this huge debt we already have."

Also from Reuters today: "Moody's Investors Service warned on Thursday that lack of U.S. government action on the budget deficit increases the likelihood of a negative outlook on the country's top AAA credit rating".


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