News How Will the Federal Deficit Change by the End of Bush's Presidency?

[selfAdjoint]

When Bush leaves office in 2009, how will the federal deficit then compare with what it was when he took office in 2001?

 

[polyb]

Deficit? What deficit?

Sadly, I don't think that is even a concern for this adminstration. If you are not the one footing the bill then why should you even care?

Considering that only 10% and soon to be less of our economy is coming from production I really don't 'see' how a deficit coould be offset. How many 'services' could be applied to offset it? Maybe we should all down some high heels, stockings, and make-up in order to 'revive' the economy!

 

[polyb]

selfAdjoint or to whomever else cares, this should be an indicator! From the Financial Times:

Central banks shift reserves away from US

Central banks are shifting reserves away from the US and towards the eurozone in a move that looks set to deepen the Bush administration's difficulties in financing its ballooning current account deficit.

 

[russ_watters]

For some background: http://money.cnn.com/2001/10/29/economy/budget/

The Treasury Department reported a budget surplus for the fiscal year, which ended on Sept. 30 [2001], of $127 billion, compared with $237 billion a year ago...

Excluding the Social Security system, the U.S. government ran a $33.52 billion deficit...

Though it also was the second-largest surplus in history, it was the first time since 1992 that the budget worsened...

 

[polyb]

Ya, I know, it's FOX news! Anyway, so much for being 'conservative'! If the way Jr. is spending us into oblivian is 'conservative', please show me some 'liberal' fiscal behavior!

http://www.foxnews.com/story/0,2933,145335,00.html

WASHINGTON — As Congress started to digest a new Bush administration request of $80 billion to bankroll wars in Iraq (search) and Afghanistan, its top budget analyst on Tuesday projected $855 billion in deficits for the next decade even without the costs of war and Bush's Social Security plan.

So adding in the 'wars'(~250 billion) and the S.S. scam(~2.5 trillion), we are going to see a deficit some 3-4 trillion dollars over the next 10 years!

Makes me wonder what else they are planning?

MORE TAX BREAKS, MORE WARS, MORE SPENDING!

WHO WILL PAY?

 

[wasteofo2]

MORE TAX BREAKS, MORE WARS, MORE SPENDING!

WHO WILL PAY?

It'll be payed for the same way the defecit Reagan and Bush racked up was payed for. Some sensible Democrat's going to come in, raise taxes a little bit, cut the rate of growth of the government by a lot (as Clinton did, then Bush made the Govt. grow at a huge pace again), and just do all the sensible things Clinton did and get it under control. Then, just as things are looking good, people are going to say "Hey, I want a damned tax cut, give ME an extra $300 a year baby, I could buy some ****ing tires or something!", then it'll all repeat all over again.

 

[polyb]

It'll be payed for the same way the defecit Reagan and Bush racked up was payed for. Some sensible Democrat's going to come in, raise taxes a little bit, cut the rate of growth of the government by a lot (as Clinton did, then Bush made the Govt. grow at a huge pace again), and just do all the sensible things Clinton did and get it under control. Then, just as things are looking good, people are going to say "Hey, I want a damned tax cut, give ME an extra $300 a year baby, I could buy some ****ing tires or something!", then it'll all repeat all over again.

Apparently that is how the cycle goes! But they have been known to 'break the bank', as demonstrated by the '29 bust!

Seems Jr. and his crew are all about 'pushing the envelope' . If they break the system, they won't have to pay for it and I'm sure they'll be sitting pretty if the s**t hits the fan!

Or maybe the plan is to 'devalue' the dollar to the point where foreign bond and currency holders will part with the holdings at a loss while they ride the wave of currency and bonds gaining value as the mess is cleaned up. Analogous to the way Japanese investors bought lots of land back in the late '80s only to turn around and sell it back at dimes on the dollar. Couldnt put anything past this crew expcept the motive for profit!

 

[selfAdjoint]

The dollar will devalue of course, slightly if wise policies take place, or crashingly if Bush and company continue their folly. Sooner or late the Chinese and Japanese will wake up and reallize the bad effects to them of dumping dollars are outweighed by the prospect of being paid in shinplasters.

 

[polyb]

The dollar will devalue of course, slightly if wise policies take place, or crashingly if Bush and company continue their folly. Sooner or late the Chinese and Japanese will wake up and reallize the bad effects to them of dumping dollars are outweighed by the prospect of being paid in shinplasters.

I didnt realize the only manufacturing left were shinplasters!

Looks like we'll have to all find an escort service to sign on with sooner or later!
_____________________________________________

Update: Well selfadjoint, it looks like your crystal ball saw forward a day or so!

Economist: China Loses Faith in Dollar

DAVOS, Switzerland (AP) -- China has lost faith in the stability of the U.S. dollar and its first priority is to broaden the exchange rate for its currency from the dollar to a more flexible basket of currencies, a top Chinese economist said Wednesday at the World Economic Forum.

At a standing-room only session focusing on the world's fastest-growing economy, Fan Gang, director of the National Economic Research Institute at the China Reform Foundation, said the issue for China isn't whether to devalue the yuan but "to limit it from the U.S. dollar."