Source: Fortune
Summary
No Labels, a centrist political organization, has released a fictional “oral history” titled “Nightmare on Main Street,” which describes a potential economic collapse triggered by a cascade of weak Treasury bond auctions. The scenario is set in 2029 and is presented as a warning about the dangers of the growing national debt. The report highlights the fact that 73% of the federal budget is mandatory spending, leaving only 27% for discretionary spending. The authors argue that the debt crisis is harder to solve than the 2008 financial crisis because it is a problem on the government’s balance sheet. The report also warns about the risk of political extremism in the face of a fiscal crisis.
Our Reading
The announcement sounds familiar.
No Labels’ “Nightmare on Main Street” report is a warning about the dangers of the growing national debt, which has recently crossed $39 trillion. The report highlights the fact that 73% of the federal budget is mandatory spending, leaving only 27% for discretionary spending. The authors argue that the debt crisis is harder to solve than the 2008 financial crisis because it is a problem on the government’s balance sheet. The report also warns about the risk of political extremism in the face of a fiscal crisis. The scenario presented is a familiar one, with a collapse triggered by a cascade of weak Treasury bond auctions. The report’s authors hope that it will move Congress to take action to address the debt crisis.
The numbers tell one story, but the real story is the one that Washington doesn’t want to tell.
Author: Evan Null
