These are the scariest words I’ve seen in a long time. I’ve been waiting for them. They are here. And, I have no idea what the world will do with them.
A variety of projections that extrapolate current policies and make plausible assumptions about the future evolution of the economy show a structural budget gap that is both large relative to the size of the economy and increasing over time.
— Ben Bernanke, Testimony Before the Committee on the Budget, U.S. House of Representatives, Washington, D.C., June 9, 2010 (third to last paragraph)
NYTimes Article HERE.
Oh, and yes, I’m still holding my short positions.