Ask an expert: Is US headed for fiscal abyss?

MSN Money's Anthony Mirhaydari answers Facebook users' questions about the nation's debt crunch.

By MSN Money Partner Jun 29, 2012 11:39AM
Will the U.S. fall into a fiscal abyss in a decade or two? In this video, MSN Money columnist Anthony Mirhaydari explains how critics believe the country is approaching a cliff as soon as 2024.

 

As he answers questions from MSN Money's Facebook community, Mirhaydari also discusses investments that do well in a debt hole environment, such as gold and other inflation hedges.

60Comments
Jul 4, 2012 1:46PM
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Let's keep blaming the middle class and entitlements for our economic predicament, and let's chose to ignore that the Federal Reserve set up TRILLIONS in secret loans to firms like Gold-in-sacks, which used the money to bet AGAINST the United States!

Oh yea, the personal responsibility people love that stuff. Let's pit common Americans against common Americans because they can't see that the game is rigged against them. Keep them fighting amongst themselves so they won't even look for the truth....they will just continue to blame each other.
Jul 5, 2012 9:57AM
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Will the U.S. fall into a fiscal abyss in a decade or two?..........A decade or two ? Really ? I'm betting before the end of 2013 we see total economic collapse in this country. Thanks Washington, past and present, for destroying this country. Only a civil war will turn things around and force all politicinas to do what the F they are supposed to do. Even voting is a scam. POPULAR votes don't matter. It's the Electoral College that decides. We need a complete overhaul of everything in this country. Tear it all down and rebuild. You know, just like Ron Paul had said for DECADES, but oh no, we can't have him as Prseident !!! 
Jul 3, 2012 12:15PM
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The US Government gave the Fed too much power. They loan taxpayers money to the banks at low interest and the banks loan at high interest back to the taxpayers and overseas and greed prevails. And then Government bail out Wall Street and the banks with more taxpayers money and the nations debt increases. And Government is not accountable to anyone so it prints more and spends more and the nations debt increases. And Wall Street acts like there is no problem. And the US Government acts like there is no problem. And the banks own and control all. The US is headed to much worse than a fiscal cliff.
Jul 5, 2012 7:57AM
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Hmmmm...yes. I'm sure your gold will taste delicious in 2024. C'mon. We have to stop the politics of resentment and blame, whatever political stripe you may be, and accept the responsibility of voting as an informed citizen. The fools need to be shown the door. That's our first order of business. True statesmen and women have to be voted in....these will probably not be rich people, nor perfect people, nor pretty people, but regular people with a love and understanding of country. We need to understand collectively that change will take time, that our population growth needs to be addressed, that energy cannot be magically produced, that certain interests will want to continue to fight needless wars, that the world will continue being hostile, and that change will take time, perhaps even beyond your own life. But we voters did this to ourselves, and we can fix it over time. We have to begin right now. There's more at stake than just your wallet. 
Jul 5, 2012 12:16AM
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Since Obama's first day in office until now, the National Debt has risen from 10.6 to 15.82 Trillion dollars and we have lost 4.6 million private sector jobs. The belief that we could spend our way out of our recession appears false.
Jul 5, 2012 9:10AM
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I think our country is sick. Everyone is brainwashed. It was the hgousing market, now it's Obamacare, whatever!!!! What about student loan debt. This is by far the the worst thing, even worse than the housing market. People are graduation with loans as big as mortgages. At least when people took out huge loans for houses, they had a house they could sell. Kids are graduating with a piece of paper that is worth nothing. These days experience is all that matters. Even worse, people would have to prove at least a little income back in the day to get a loan for a house. Student loans are only given to kids who CANNOT afford school. This is a** backwords. Just wait about 10 years when people cant pay for anything. Instead of working and using your income for food, housing, and occasionally splurging for personal enjoyment; people will only be able to pay their debt. College is the biggest form of big business and our society has brainwashed kids into believing they need a degree to suceed. By the way, I do have a degree and I paid off my loans because I went to a community college and then worked my but off to pay them off inj 2 years.
Jul 4, 2012 2:14PM
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The Federal Reserve owes every voting American $15,000.00.
Here's an idea for QE III.

If more stimulus money is given to the likes of Gold-in-sachs, that money will not benefit the US economy.

Jul 5, 2012 12:40AM
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Are we headed off a cliff?

 

You better believe it !!!

Jul 5, 2012 7:29AM
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GAME OVER WASHINGTON! WE THE PEOPLE ARE NOT FOOLED ANYMORE! START DEALING WITH....THE REAL ECONOMICS OF THIS COUNTRY....NO REAL MANUFACTURING OF GOODS WHICH DRIVES THE ECONOMY! GET TO WORK WASHINGTON OR GET OUT BEFORE IT GETS REAL UGLY!!!
Jul 4, 2012 5:28PM
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Jamie Dimon's own words:

If a bank fails and needs FDIC money it “should be dismantled after that, and the name should be buried in disgrace,” Dimon said.

We're holding you to that Dimon.

Jul 5, 2012 11:39AM
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We don't have a decade or 2 - we have a best a few years - when debt approaches 100% of gdp, growth is reduced by about 1% per year, that is the situation we are in now, as debt increases it gets worse.

There is a saying in economics "If something cannot happen it won't happen" we cannot continue to borrow/print 1 and a half trillion dollars per year, who will buy our bonds and if the fed prints that much money hello inflation.

We need adult leadership in Washington, these guys have kids and grandkids, let's hope that they care more about their kids and grandchildren than the next election.

Jul 5, 2012 9:43AM
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I don't think it will take until the next decade or two!!

:(
Jun 29, 2012 3:21PM
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At this point in time, this reality is unavoidable.  The Country as a whole can not sustain the burden of massive new spending programs combined with massive debt.  The Economy is stagnate and our Nation is at WAR with an Enemy who wills our destruction.  We the People have been forced to beleive by our Government  that Islam is good and Islamic terrorist do not exisit. The American people have little stomach to handle their own lives and wish for someone else to hold their hand and take care of daily life matters for them.    The cliff is in sight and we are in a nose dive headed for it.  The reality will be that it wll be to late to pull back on the stick before we crash and burn.  The outcome will be the survival of the fittest.
Jun 29, 2012 4:11PM
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Unless something is done about SPENDING, we will go over the cliff sooner than expected.  Or big problem is SPENDING and nothing isbeing doen to change it.  The new taxes in Obamacare are just going into the general fund and no control over how or what they are spent on.  (21 new taxes in the bill, and they hit everyone). 
Jul 2, 2012 7:50AM
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We all know that an increase in taxes just gives them more money to spend. They won't cut anything. They'll just spend it and look for more. It's become  a war of words with our government. It's not "increase taxes". It's increase revenue. It's not a tax. It's a penalty. What's ironic is people believe that garbage. I've been on these blogs since 2006 and everytime that I think I've heard it all theres more surprises. I asked a long time ago----can the US go bankrupt? Looks like we'll see real soon.
Jul 5, 2012 10:57AM
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 We have already gone over the cliff, just wait untill we hit bottom,the librels will blame everyone else..

 

 

Jul 5, 2012 1:10PM
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Cliff is comming very soon,  we need to push the corrupt congress, Courts, and Obama-Nation off the cliff..    As a country we have way too much debt and exported too many jobs, we are done, cooked like a turkey and mos americans are WAY TO STUPID to realize.  Liberal Media, Crap TV, Bad Schools, and Drugs have done this country in..  Not to mention really stupid corrupt politicians and NO RECOURSE..   

 

Step Up America - Get a Clue..

Jul 5, 2012 10:57AM
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Forget GOLD, forget SILVER, invest in LEAD, POWDER, PRIMERS and BRASS all of which should combined in the proper sequence! Just MHO you understand

Jul 5, 2012 10:59AM
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We sure are,. and Obama is driving the bus!
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