A former adviser to the Bush administration told CNBC that every American will have to work 10 years longer than they thought to pay off the mounting U.S. debt.
In view of Malmgren, any U.S. economic recovery will be based primarily on manufacturing, agriculture and innovation, but the banks need to watch out if they continue to refuse to lend to American businesses and consumers.
With tensions high over the debt crisis in Europe, Malmgren expected, several rounds of the bonds haircut that will eventually see the devaluation of the euro zone countries.
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