The federal government is running a huge deficit and the national debt is more than 12 trillion dollars. The interest on that debt is expected to exceed 700 billion dollars a year or 500 billion more than last year. The interest on our debt is half a trillion dollars more than a year ago.
To put this in perspective, the NYT points out:
In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
Our interest on debt is more than several budget items including both wars. When liberals tell you how much money there would be without the wars remind them how much more there would be if we did not have to pay nearly three quarters of a trillion dollars in interest (half a trillion more than last year).
The government is about to have a triple whammy in the not too distant future as Democrats under Obama rack up tremendous new debt, short term borrowing that comes due in the next few months and interest rates that will go up after this fabricated emergency passes.
Obama said he will halve the deficit by the end of his first (and I hope only) term but this will be nearly impossible. Look for him to blame Bush.
Americans are saving more but are still saddled with a lot of personal debt from years of care free credit buying. Many were devastated because they foolishly bought houses they could not afford and are now in real financial trouble. Unfortunately, the people with these kinds of problems are no different than our government which continues to spend as if there is no tomorrow.
Might not be if they don’t get a handle on it.
But that will mean raising taxes on everyone not just those who already pay almost all the taxes. Yes, as hard as it is to believe the so called tax cuts for the rich better helped those in the middle class as the wealthy already pay nearly all the taxes in this country.
But that will change if Obama wants to reduce the debt because there is simply not enough money available from the rich to take care of the problem. If we took 100% of their money we would still not be out of trouble. The money will have to come from everyone so those of you who believed Hopenchange when he said he would not tax you, you are in for a surprise.
He cannot reduce the debt without taxing you so he either lied about reducing it or he lied about taxing you.
Either way, he ran up the debt and the bill will come due.
How’s that Hope and Change working out for you now?
[tip]If you enjoy what you read consider signing up to receive email notification of new posts. There are several options in the sidebar and I am sure you can find one that suits you. If you prefer, consider adding this site to your favorite feed reader. If you receive emails and wish to stop them follow the instructions included in the email.[/tip]