Obama Increases Debt at Three Times Bush Rate
By Mark Noonan on Tax and Spend Liberalism
The change we can believe in:
<<< The federal government is now $13 trillion in the red, the Treasury Department reported Wednesday, marking the first time the government has sunk that far into debt and putting a sharp point on the spending debate on Capitol Hill.
Calculated down to the exact penny, the debt totaled $13,050,826,460,886.97 as of Tuesday, leaping nearly $60 billion since Friday, the previous day for which figures were released.
At $13 trillion, that figure has risen by $2.4 trillion in about 500 days since President Obama took office, or an average of $4.9 billion a day. That’s almost three times the daily average of $1.7 billion under the previous administration… >>>
This is entirely out of control and it is unsustainable. Eventually, purchasers of US bonds will start demanding a premium to lend us money, just as they are demanding from Greece and Spain. When we reach that points, we’re just a step away from complete national bankruptcy.
When will we hit that point? Impossible to say with any certainty – the markets, these days, are driven by sentiment more than logic. As it stands, any government bond is essentially a gamble. Smart investors are staying away from them. The best guesses I have seen are that some time between 2013 and 2015, unless we radically cut spending and get our house in order, we’ll face the threat of sovereign default.
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