In an analyst note, Ethan S. Harris, an analyst at Bank of America, is predicting the continue slowing of the US economy this will lead to 2 things, the tightening on spending and a debt downgrade for the US.
According to him, the Super Committee responsible for cutting spending will deadlock and not accomplish anything. Since most of the Republicans signed the Norquist "No Taxes" pledge and Democrats are unwilling to cut entitlement programs, the committee will do nothing. The automatic spending cuts to defense will simply occur.
It is Mr. Harris' opinion that next year will be very difficult. Given the rate of inflation and the clueless attitude of this administration, Mr. Harris' findings are correct. It will be tough next year.
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