The Sunset of Federal Government Guarantees

In a relatively short period of time, perhaps in the period 2012–2015, the U.S. will face so many problems that these empty guarantees will be impossible to honor. At that point, the system of guarantees stands a good chance of collapsing altogether. That will be the sunset of federal guarantees. They will be buried.

Naturally, this prediction has a wide margin of error. I make it, less to be a seer who is predicting the inevitable, than to focus attention on these guarantees.

When the system collapses, there will be a great deal of turmoil. In trying to save that system, the government will probably create even more turmoil and heartbreak.

The government is actually bankrupt and just doesn't know it yet. It has made many promises it will not be able to keep when the bills come due.