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McCaughan CNBC guest this AM living in La-La Land

|Includes: BAC, Citigroup Inc. (C), GS, JPM, MS

These guys continually undermine or Pooh Pooh a serious problem. His comment this morning is that there is lots of time to deal with the Debt problem.

Thats called kicking the can down the road. Few understand that the difference between the US and most European Countries is interest rates. Just because Bernanke has managed to keep them low does not mean they will remain there. If the US was paying 7% tomorrow, they would be in just as much trouble as European countries.

This "forced" $1.2trillion in savings over 10 years if the Super Committee do what everyone expects "NOTHING" is farcical!

In 10 years from now the US will be another $13,000,000,000,000 in Debt. Subtract that puny $1,200,000,000,000 in savings that likely will not happen anyway, and you are $11,000,000,000,000 in debt.

Now take the present $15,000,000,000,000 and add the two together and you are $26,000,000,000,000 in debt.

So lets see what Obama is spending a year now. We will say for argument sake $1.5 trillion. Now forget about anything else, including running the Entire USA, whats the interest payment on $26,000,000,000,000 ? Lets suppose its 4% in ten years from now.
Your "interest payment ALONE will be $1,200,000,000,000 a year.

Now try to run the entire USA with ZERO?

So in 10 years your interest payments alone will be higher then what you hope to cut in spending over 10 years?  Can you say FARKED?

Someone better get a grip!