It appears that the Canadian Prime Minister agrees with me about the US debt situation. He commented upon it in a year end interview with Global News as reported here in The Vancouver Sun, describing the US debt situation as a ‘runaway train’.
He expressed these views despite predicting that some sort of compromise will be reached on the so-called Fiscal Cliff which I have also maintained is largely irrelevant.
Interestingly he also expressed the view that some people are living in a fool’s paradise because they are lulled into thinking that they are living within their means by low interest rates and would be unable to cope if or when rates begin to rise. This is especially true of many of the people who are operating on interest only mortgages, as well as the governments of the United States and the UK.