Posts in "Debt"

Robert Bentley's picture
By Robert Bentley at 9:50PM

President Obama's Proposed Budget Would Add More Than $9.7 Trillion to the National Debt

When most people think that $12 trillion is a lot of money, we get this story:

President Obama's proposed budget would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday. Proposed tax cuts for the middle class account for nearly a third of that shortfall.

The 10-year outlook released by the nonpartisan Congressional Budget Office is somewhat gloomier than White House projections, which found that Obama's budget request would produce deficits that would add about $8.5 trillion to the national debt by 2020.

When is it enough? When do our officials in Washington have to wake up before they realize they are destroying the country through debt?

It has been said that the greatest danger we face in this country is our fiscal irresponsibility.


Read more here
Sam Swedberg's picture
By Sam Swedberg at 3:50PM

$107 Trillion

social uh oh

In 2009 alone we had $107 trillion worth of unfunded liabilites, 10 times our national debt. Unfunded liabilities are the difference between the promised benefits of current and future generations and the amount of taxes and Medicare premiums collected. How long will the American people, especially the younger generations, allow blatent stealing of their money for programs they'll never benefit from anyway? I haven't met anyone who is complacent about money they've rightfully earned, yet most people still don't bat an eye when looking at their paychecks. Is it based on a blind faith that government will always provide? Whatever the reason may be, something must change. The sooner the better.

This article from the National Center for Policy Analysis is a great tool for anyone interested in arguing why Medicare or Social Security should be scrapped.

Bonnie Kristian's picture
By Bonnie Kristian at 12:51PM

With government, "change" almost always means a change to more government.

And "bringing new ideas to Washington" means new ideas for how to spend your money.  Bush's budgets were horrific, of course, but Obama has definitely made things worse (particularly note that large increase in aggressive war -- er, defense -- spending):

image

Click on the image for a larger view.

Roy Antoun's picture
By Roy Antoun at 3:56PM

Deficit & Debt: Goodbye American Power

The United States has an interesting role in global markets. Since World War II, the US has entangled itself in superfluous alliances and Keynesian markets, engaging in the same illusory markets as its European counterparts. As Jihan discussed, we have recently learned that President Barack Obama’s proposed federal budget may put the United States' economic legitimacy in even greater risk than it has been before for several reasons. Primary, our deficit is running off “nearly 11 percent of the country’s entire economic output.” But as the NY Times has stated, most deficits are usually brought down during peacetime. However, with the way the United States has been handling foreign policy as of recent, any form of “peacetime” seems like an ocean away from any “hope.”

From NYT - Carrying the Budget


Read more here
Bonnie Kristian's picture
By Bonnie Kristian at 10:15PM

College graduates' loan debt climbs to record levels

For students in Oregon (and around the country) times aren't good.  Debt and tuition are up; job opportunities are down:

More than 60 percent of Oregon's 2008 graduates in public and private colleges took loans averaging $21,029. That is the 22nd highest debt rate in the nation, and just slightly lower than the national average – a record high of $23,200.

Aggravating the problem is their difficulty in finding jobs that enable them to pay off their loans. National unemployment rates  for college graduates ages 20 to 24 rose from 7.6 percent in 2008 to 10.6 percent this year....At the same time, tuition has gone up significantly.

Peter Schiff has an explanation for the first two problems (well, and the third, but that's another blog post):

 It's the government's fault for handing out so much money through loans and grants.  No government bailout, Schiffian logic goes, no inflated tuition.

"College should not be so expensive. It's the biggest recession since the Great Depression. How could college prices go up?" Schiff asked...

Read the rest here.

Dave Grabaskas's picture
By Dave Grabaskas at 10:25AM

YAL at OSU Protests Reckless Gov't Spending

Members of YAL at Ohio State took to the streets to protest rising government debt and runaway inflation. For most of the afternoon, YAL blanketed campus with their giant debt poster. Despite the rain and the cold, many students stopped by to get more information on the national debt, inflation, and the Federal Reserve. 

Later in the evening, YAL moved downtown to the steps of the Statehouse to let people know that we will not let our generation be destroyed by current , reckless government policy. 

Debt Sign

 


Read more here
Brian Beyer's picture
By Brian Beyer at 10:01PM

Oh Thank Heaven for 7-11

During President Obama's trip to China, he was questioned about the cost of the healthcare reform that he is pushing through by Chinese journalists (Hard questions for the president are something refreshing, especially from somewhere like China. It's also a bit hypocritical that he lectured them on censorship when he censors his own questions and when US press censorship runs rampant). The Chinese were rightfully concerned about the cost of this new proposal as they are, by far, the number one buyers of US debt. Despite the phony numbers being thrown around by the left, the Centers for Medicare and Medicaid Services delivered a "deathblow to Obamacare" showing that costs will increase and people will lose insurance, among many other travesties. 

With increasing pressure from Beijing to stop the reckless spending, the US is quickly running out of options. Paying all of the debt back would require massive tax hikes and drastic cuts in governmental programs (something which I certainly do not object to). If nothing is done soon, the US will be forced to repudiate its debt. This would leave China terribly angry and the US government with hardly a speck of credibility. 

Unfortunately, I think we're well past this point. The only question now is, chapter 7 or chapter 11?

Bonnie Kristian's picture
By Bonnie Kristian at 2:21PM
Posted in:
Preston Mui's picture
By Preston Mui at 4:30PM

Cost of Obama's Presidency? $9 Trillion

From the Washington Post:

The nation would be forced to borrow more than $9 trillion over the next decade under President Obama's policies, the White House acknowledged late Friday, bringing their long-term budget forecast in line with independent estimates.

The new projections add approximately $2 trillion to budget deficits through 2019. Earlier this year, the administration had predicted that Obama's policies would require the government to spend $7.108 trillion more than it collects in tax revenue over the next decade.

Joseph Gauthier's picture
By Joseph Gauthier at 9:03PM

Fannie Mae Asks Government for Additional $10.7 Billion

Question:
What lender would choose to loan their client additional capital after its regulator says the debtor will be unable to pay it back?

Answer:
The United States Government.

Last week, James Lockhart, director of the Federal Housing Finance Agency, said "it's hard for me to see that [Fannie Mae] will be able to repay all of that." After all, "their book is so large." According to the Washington Post, "Lockhart's comments were a blunt acknowledgment that while the government has long said its bailout of the financial sector largely represents an investment that will be repaid, billions of dollars are likely to be lost."


Read more here