The Coming Crisis

Like no one saw this coming...

Sorry, but this picture just works for so much.

Politics virtually guarantee that the global economy won't go into crisis in 2011. Politics make it extremely unlikely that the global economy will slow down as much as the market seems to fear. Politics, in fact, put a safety net under the global economy this year.

And politics also virtually guarantee another, deeper crisis in 2012 or 2013. I'd bet 2013.

We can't have a total meltdown until Barry leaves office now can we?
Even though his policies (and his predecessor's to an extent) have lead to this mess.

By 2013, no matter how the election goes, the Federal Reserve will be under almost unbearable pressure to reduce its balance sheet and raise interest rates. That's when global bond markets will really pressure the United States to come up with a plan -- at the least -- for reducing its budget deficit over the long term.

My gut says it will be before 2013...