The 2020's will be very different than the 1920's, and the national debt will to be blame, according to financial experts in a new report from Yahoo Finance.
The outlet interviewed influential bond investor Jeffrey Gundlach, who predicted that the next economic downturn will cause the U.S. debt bomb to explode:
"It's pretty interesting because the 20s in the 20th century, the 20s were super boom times. And weirdly, I think the 20s this time will be very much different than that, with real turmoil," the 60-year-old billionaire said in a recent wide-ranging interview with Yahoo Finance.
In Gundlach's view, the 2020s will see "the crescendo" of many unattractive trends that have been talked about for years, but finally come home to roost.
"[We're] going to have to face Social Security, health care, all of these things, deficit-based spending — all of that is going to have to be resolved during the 2020s because the compounding curve is just so bad," the billionaire added.According to the Congressional Budget Office, the federal deficit will top $1 trillion every year beginning in 2022. Yet Gundlach said the agency’s forecast may be too rosy, given that it assumes a "pretty benign future" with no recession and interest rates that are not very high.
Even if the debt bomb doesn't explode in the next decade, our children and grandchildren remain at risk of financial ruin unless Congress chooses to act. But if the last 100 years are any indication, Congress will never impose meaningful fiscal restraints on itself. Federal politicians will continue to spend until they run our country into the ground, and then they'll simply blame the other side of the aisle for our fiscal collapse.
There is another way. An Article V Convention of States can propose constitutional amendments that force Congress to be fiscally responsible -- not in ten years, not when they want to, but RIGHT NOW.
A Convention of States is called and controlled by the states. It's empowered under Article V of the Constitution to propose amendments, and once those amendments are ratified by 38 states, they become part of our nation's founding document.
It takes 34 states to call a Convention, and 15 have already jumped on board. If you want to be a part of the movement in your state to save our country from falling off the fiscal cliff, sign the Convention of States Petition below!
