Apr 11 2009

Country Going Broke At Unsustainable Speed

President Obama and the Liberal Congressional democrats are on a path to bankrupt this country. Typically it takes many years to accumulate $1 trillion in national debt. It took over 200 years to accumulate the $9 trillion in debt that was reached under President Bush. 200 years!

In the last month the US debt rose at an astonishing clip, a rate that could produce as much debt as we amassed in 200+ years in less than 5 frighteningly short years:

The Treasury Department said Friday that the budget deficit increased by $192.3 billion in March, and is near $1 trillion just halfway through the budget year, as costs of the financial bailout and recession mount.

Last month’s deficit, a record for March, was significantly higher than the $150 billion that economists expected.

“Significantly higher” is a gross understatement. That is a 30% increase over the estimate for the month. Far worse than that, it means the White House and CBO estimates noted in the graph above could be way low as well.

The deficit already totals $956.8 billion for the first six months of the budget year, also a record for that period.

If we only double the 6 month number we get to $ 1.914 trillion for the year, well over the White House estimate and creeping above the CBO numbers.

But if we assume a constant monthly pace through the end of the year equal to March (which is not unreasonable since clearly the CBO and White House assumed a similar monthly pace in hitting their numbers) then it is much worse.

6 more months at the March pace would means an additional  (6 x 192.3) $1.514 trillion!  

Bringing the total deficit for the 2009 Government Fiscal Year to a staggering $2.111 trillion!

That would mean the White House seriously screwed up their projections and were way too optimistic, missing the mark by a unbelievable $361,000,000,000 ($361 billion). Yet somehow Wells Fargo was able to post $3 billion in profits and millions of average American taxpayers are out of work. Does this make any sense?

It will take generations to fix this mess. The country cannot sustain this for 2 years, let alone 4 years. At this rate the country would accumulate as much debt in a little over 4 years as what it took us over 200 years to produce before President Obama took office. Americans need to stop this in 2010 or the future we hand over to our children will be bleak and harsh.

4 responses so far

4 Responses to “Country Going Broke At Unsustainable Speed”

  1. kathie says:

    Everyone says, just get money in the hands of us, the people, we will spend it and the economy will right it’s self, hence all these government spending programs. I think that is absolute bull! We, have lost so much that any money we get we will save until we feel safe again. Yes we will buy food and try to keep our houses but after that we will save every penny. Government spending, heaping one new program on top of another, not knowing how much it’s going to cost, says to me, save every penny. If the government was as austere as my household I might have more confidence.

  2. I R A Darth Aggie says:

    Curiousity prompts me to ask how much interest has to be paid on a loan of $9 trillion?

  3. WWS says:

    About $400 billion per year, at current interest rates.

    Yes, over 10 years that’s $4 trillion just to pay interest.

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