Our nation faces the most predictable economic crisis in its history. Spending is rising rapidly, and revenues are failing to keep pace. As a result, the federal government is forced to borrow huge sums each year to make up the difference. If not addressed, burgeoning deficits will eventually lead to a fiscal crisis, at which point the world's financial markets will force decisions upon us. Many will dismiss these warnings, preferring the ostrich strategy of putting their head in the sand to the painful practice of facing reality. Yes, interest rates remain low today-mainly because the alternatives to U.S. debt aren't particularly attractive right now. But if we continue to borrow at this rate, the bond market will turn on us, and when it does, it will be swift and without warning. Another reason investors keep lending the U.S. money is that they assume policymakers will address our fiscal problems before they lead to a crisis. They take confidence in Winston Churchill's famous observation: "You can always count on Americans to do the right thing-after they've tried everything else."
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