We better be paying close attention to what is going on in Europe. Their deficit spending has gotten so bad in some of their countries that their bond rates are pushing 7%. This is not just going to affect the countries with bad judgment, but since the majority of the continent uses the Euro, they are saying this is going to impact everyone and could risk the union altogether.
Last week there was talk that the US bond rating would be dropped to AA and if you don’t think that will mean higher interest rates on our debt, you’ve got another think coming.
With the spending track we’re on, there is no reason to think that can’t or won’t happen here.
http://www.guardian.co.uk/business/2010/feb/07/bond-market-greece-pigs
