Posted on 08/29/2009 11:47:55 AM PDT by Signalman
NEW YORK (CNNMoney.com) -- A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans' bottom line one way or the other -- if not tomorrow, then the day after.
The U.S. government has been spending a great deal more than it has been taking in, and it is on track to do so well beyond the next 10 years. It has been borrowing money to make all that spending possible and it has to pay the money back with interest. How, you ask? By borrowing more.
The solution is straightforward if unpleasant: Shy of finding a fairy willing to leave trillions under Uncle Sam's pillow, lawmakers will have to raise taxes and cut spending.
The more the country lives on a credit card, the more it makes itself beholden to the demands of its creditors -- many of which are overseas. The danger is that buyers of U.S. debt could become concerned that the country is running too high a balance. If so, they will demand higher interest rates -- thereby making the country's debt problem worse -- or they'll put their money elsewhere.
At that point, things would get ugly.
"Taxes would rise to levels that would make a Scandinavian revolt. And the government would not be able to provide anything but the most basic public services. We would no longer be a great power (or even a mediocre one), and the social safety net would evaporate," tax policy expert and Syracuse University professor Len Burman wrote in a recent op-ed cheerfully titled "Catastrophic Budget Failure."
(Excerpt) Read more at money.cnn.com ...
There won’t be any money left after cap and trade and gov’t healthcare.
In 233 years the debt has grown to about 7 trillion dollars.
If spending continues as projected Obama will increase it by 7 trillion in only 4 years.
Well DUHHHHHHHHHH, whenEVER democrats need money -what do they do???
“Hey! Let’s get Joe Tax-payer to pay for it! Yeah, he’ll bankroll EVERYTHING!”
WOW, even CNN get’s it!
Spending begets spending.
The actions taken by the Democrats, by design and some Republicans, from a lack of design, is to create an unimaginable need for money...a black hole that nothing can escape. The closest historical parallel maybe is Spain during the era of New World expansion. The financial basis of their rise to greatness in Europe was gold plundered from the Aztecs and Incas. When that finally played-out, they became a third-rate power. We, our children and grandchildren are the new Aztecs.
the dims have had congress for almost 3 years and still on lid on spending.....time to stop blaming bush....
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