Classic Videos: Niall Ferguson on America's Death Spiral
In this recent CNN interview, Harvard Professor Niall Ferguson predicts that, barring a radical change in policy, "nasty fiscal arithmetic" will send the U.S. into a "death spiral." Some representative quotes:
"Fiscal tightening is baked in the cake. Tax increases are coming and coming soon... The US has a kind of stay of execution while the European crisis unfolds, but at some point the nasty fiscal arithmetic will get everyone, including the U.S... Treasuries are a safe haven the way Pearl Harbor was a safe haven in 1941. It's safe until it's not safe anymore."