Daily Archives: February 14, 2010

US debt will keep growing even with recovery

By Bob L. Trying to ride out this non recession! Penniless Person Financing Borrowing Clip Art

FILE - This Feb. 1, 2010, file photo shows the National Debt Clock in New York.If any one says that we are not in a recession or ready to drop into a recession you are being misinformed by our Government bureaucrats, and the news media.

Do you think you are better off today then you were TEN yours ago? if you are then you are one of the lucky ones, you better be thankful and hang on to what you have and not look for some thing better.

At this point of time I don’t believe one word this Government is peddling.
By TOM RAUM, Associated Press Writer

WASHINGTON – It’s bad enough that Greece’s debt problems have rattled global financial markets. In the world’s largest economic and military power, there’s a far more serious debt dilemma.

For the U.S., the crushing weight of its debt threatens to overwhelm everything the federal government does, even in the short-term, best-case financial scenario — a full recovery and a return to prerecession employment levels.

 Money Animation _ dinamobomb The government already has made so many promises to so many expanding “mandatory” programs. Just keeping these commitments, without major changes in taxing and spending, will lead to deficits that cannot be sustained.

Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.

That doesn’t leave room for much else. What’s left is the entire rest of the government, including military and homeland security spending, which has been protected and nurtured by the White House and Congress, regardless of the party in power.

The U.S. debt crisis also raises the question of how long the world’s leading power can remain its largest borrower.

 Money Animation _ dinamobomb Moody’s Investors Service recently warned that Washington’s credit rating could be in jeopardy if the nation’s finances didn’t improve.

Despite election-year political pressure from voters for lawmakers to restrain spending, some recent votes suggests that Congress, left to its own devices, probably isn’t up to the task of trimming deficits.

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