>>1997 budget deficit was estimated at around $22 billion
September 30, 1997 $5,413,146,011,397
September 30, 1996 $5,224,811,939,135
Increase $188,334,072,262
I don't see why the article worries about a shortage of bills bonds and notes. 188 billion in new debt was issued when the federal government claimed a 22 billion dollar deficit. Since the economy will grow at least 1% slower in 98 than 97, thanks to SEA, a shortage looks like the least of our problems. Someone will have to come up with 57 billion for the IMF just for Korea alone. If China's real estate continues it's current slide, China will be happy too sell lots of US paper to anyone who is worried that there might be a shortage (200+ billion). Then there is Japan (800+ billion) with it's woes and Europe who will dump some dollars if the Euro is even mildly successful (many hundreds of billions if they capture 15% of the worlds reserves). I am not saying that someone will dump, but if one of these major players does and there are losts of reasons why they might, then others must dump or they will have to watch their investment go down the toilet.
The real deficit is actually about double this number since social security funds for the future are being spent as general revenues and don't even appear in these numbers (they appear as special notes in a fund rather than as treasury paper). If the government was forced to report deficits like real businesses and account for future claims for social security as the population ages ... forget it dumb idea -g- |
