That is a terrifying number.
That is the new debt that we could be hitting as of 2015.
Where are the people who were screaming at Bush II for a debt of 500 billion by the end of 8 years?
Excuse me – this deficit was 10 trillion dollars in 2008. Barring spending (though reckless on both sides of the aisle for TARP – which has for a large part been repaid making Bush’s “black hole” be more of a loan that is paid back – and the Stimulus plan – which hasn’t paid anything back or created jobs for that matter) to try and stem the bank failures and the failing economy – Barack Obama is now looking to easily eclipse 7 trillion in excess spending in 7 years.
Doesn’t it bother the people who are still pounding their chests and saying “Bush spent too much”?
Doesn’t it bother the people in the center and on the left side of the aisle that very shortly, our debt ceiling will actually overshadow the entire income of EVERYONE and EVERY BUSINESS in this country?
Folks – here is the long and the short of it.
Shortly, we will lose our bond rating as a nation.
Once that happens, it will cost us more to borrow and hold debt as a country – making the interest a higher percentage of the national budget every year. Right now, conservative estimates had that number at 880 BILLION dollars (remember – the country takes in 2 trillion a year in taxes – this is more than a THIRD of our budget) in interest payments on our debt alone by 2020.
That was when it was expected that the costs of the budgets that were being proposed were only going to hit 20 trillion dollars by 2020. Check out the chart from a leading economist up above. He didn’t have it figured nearly so high when he drew it up – it didn’t approach 100% of GDP for a while and yet we are there now. The debt ceiling has been raised higher than our GDP is at this time.
Never to be outdone by any idea that could be spent on, the progressive left in their “we control everything so we are passing anything now no matter the cost to you because we’ll be dead by the time the consequences come due” attitude has sped up their spending agenda.
We continue to warn our readers of this because, like the ObamaCare act, the cost overruns are just beginning. The revisions by their OWN departments show that right now, the costs are most likely almost doubled. And please, don’t forget that this is without the costs that were defrayed by moving costs to other bills.
Like the cuts to the doctors payments, which were added back in to another bill. To the tune of tens of billions that were being touted as “saved” by the Congress and ignored by the CBO, who had to have heard about this maneuver and didn’t add it in to their estimate out right before the bill passed.
Like trying to say that the 550 billion in medicare cuts doesn’t go at odds with the part D “closing of the doughnut hole” that economists are saying is unsustainable because you can’t add at least 100 billion a year in costs and subtract 550 billion in 10 years and call it a “net gain”.
I would love to have someone explain how double counting numbers makes good accounting sense.
The upward trend in these debt figures is going to skyrocket if spending isn’t halted and then cut. This is going to grow in a major way if we don’t stop the trend that is going to cost us interest points on our debt.
Think about a credit card and the payments that escalate in a huge way if you don’t make your payments. Your interest is almost at usury rates and your payments are through the roof on a relatively small amount of debt.
That could very well, as it happened in Greece, happen to us.
Probably sooner than later.
I am starting to seriously think about 2012 now, and one of the first people that comes to my mind is Mitch Daniels from Indiana – he took his state from debt to 1.3 billion in surplus even now, with the state bond ratings with three agencies moving up to AAA.
His state is one of 9 to have an AAA rating, and one of 2 to have three AAA ratings.
All while improving services and cutting waste.
Keep an eye on that man. God knows, we could use someone like him in 2012.
Great shout out to Stanford economist John B. Taylor – where I referenced the charts from.
Originally posted at: DRScoundrels Blogsite