Monday, February 21, 2011


A couple of articles I read last weekend caught my attention.

Larry Kopsa CPA

State, local and federal debt in U.S. is highest since WWII

(Washington Post) The total debt of city, state and federal governments in the U.S. is greater than the size of the economy, the highest level since World War II, government data show. Debt declined quickly after 1946, but the level of indebtedness is increasing and stands to increase for years, regardless of action taken by Congress and President Barack Obama, according to this article. Rising interest rates and slow domestic growth make deficit reduction more difficult than it was after World War II, the newspaper noted.

World's economy is nearing a "breaking point," World Bank's Zoellick says

(Business Day) Commodity prices are driving the global economy to the "breaking point," World Bank President Robert Zoellick told finance ministers from the Group of 20 nations. Central banks throughout the world are under pressure to raise interest rates as surging commodity costs increase inflation.