Tuesday, May 12, 2009

what happens when we can't repay this

WASHINGTON – The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates. Budget office figures released Monday would add $89 billion to the 2009 red ink — increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.

The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's economic stimulus bill — as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.

As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.

Just a few days ago, Obama touted an administration plan to cut $17 billion in wasteful or duplicative programs from the budget next year. The erosion in the deficit announced Monday is five times the size of those savings.


Are they going to repo the statue of liberty and melt it down for scrap. Will China take over the big three automakers. No they wouldn't want that. Just the missle defense program. I expect those bozos in charge would give it to them.

And there will be trillions more for a bloated health care system coming to a theater near you. It would be funny except I have begun to like my grandson these days. I hate to see us selling him into slavery. Wait is that what these bozos want a return to slavery with everybody a slave this time.

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