Ron Paul

“ Rising Debt to GDP Ratio is a Warning Washington, DC: In testimony before the House Financial Services Committee last week, Federal Reserve Chairman Alan Greenspan painted a rosy picture of the U.S. economy. ”

“ The unfavorable ratio of new Treasury debt to GDP has been trending upward for decades. Between 1962 and 1982, the ratio was $1.50/$1 or less. By the mid 1990s, the ratio had grown to about $3/$1. Today the Fed must create nearly $7 of new debt to generate $1 of new GDP.
As financial analyst Jay Taylor explains, this trend illustrates that the only solution federal policy makers know is to print more and more money. Federal debt naturally grows faster than income-- while there are no limits to how fast the printing presses can run, there are natural limits to economic growth. ”

“ The end may come when foreign central banks realize the dollars they receive are worthless, or when they find other places to turn for income. When that day comes, interest rates will rise, perhaps dramatically. ”