a trillion dollars
president-elect obama announced that in 2009 national deficit is expected to reach $1T (that’s trillion) more than double 2008’s seemingly unfathomable $455B (billion). the last time we had a surplus was before 2001 before 9/11/01.
fox news attributes the bush administration deficit to “costs from the 9/11 attacks plus the tax cuts [bush] pushed through congress.” these actions turned president clinton’s $127B surplus into a $159B deficit. add to that the iraq and the afghanistan wars and more tax cuts and we reached the aforementioned $455B.
chief economist and co-founder of moody’s economy.com, mark zandy said that borrowing will be necessary to achieve president-elect obama’s stimulus package goals so much so that the deficit “could easily exceed $1T in fiscal 2009 and go even higher in 2010 [and] that borrowing by the treasury could top $2T this year.” this also means that all of our borrowing adds to the national debt* and we owe more and more to “states, corporations, individuals and foreign countries such as china and japan who buy u.s. treasury notes, bonds and other debt instruments.”
i want to know if given the state of the world whether china and other countries will be able to afford to even buy our debt. what do you think?
* national debt is now about $10.6T up from $5.7T in 2007.
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