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Trivia Tidbit of the Day: Part 556 -- Obama Budgeting.

Government Growth On Steroids, Here We Come-

In the short run, this surge of debt would increase interest rates. The United States govern­ment would find itself competing with other deficit-ridden nations to borrow massive amounts of money from a shrinking pool of global savings. Although U.S. Treasury bills are a popular invest­ment for domestic and international investors in these uncertain economic times, investors will shift out of them when the economy recovers, thereby raising interest rates. The steeply higher govern­ment debt levels will likely accelerate that increase in interest rates. These will slow down the economic recovery by making it more costly for businesses to invest and more difficult for families to afford home and auto loans.

In the long run, Washington is dumping a colos­sal amount of debt into the laps of our children and grandchildren. Between 2008 and 2013, the budget will add $5.7 trillion ($48,000 per U.S. household) in new government debt. The annual interest on this debt would nearly equal the entire U.S. defense budget by 2019. Moreover, given the unsustainable costs of paying Social Security, Medicare, and Med­icaid benefits to 77 million retiring baby boomers, the federal debt will continue expanding after 2019. Without real reforms, the result may be devastating tax increases for decades to come.

Obama must be a one-termer. Republicans must retake at least part of Congress in 2010.

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Posted by Will Franklin · 18 March 2009 11:03 PM

Comments

Posted by: ZsaZsa at March 19, 2009 04:24 AM