U.S. Debt Expected To Soar This Year

[FreeStateDemocrat]

Source: Washington Post

$2 Trillion Increase May Test Federal Ability to Borrow

By Lori Montgomery
Washington Post Staff Writer
Saturday, January 3, 2009; Page A01

With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world's appetite for financing U.S. government spending.

For now, investors are frantically stuffing money into the relative safety of the U.S. Treasury, which has come to serve as the world's mattress in troubled times. Interest rates on Treasury bills have plummeted to historic lows, with some short-term investors literally giving the government money for free.

But about 40 percent of the debt held by private investors will mature in a year or less, according to Treasury officials. When those loans come due, the Treasury will have to borrow more money to repay them, even as it launches perhaps the most aggressive expansion of U.S. debt in modern history.

With the government planning to roll over its short-term loans into more stable, long-term securities, experts say investors are likely to demand a greater return on their money, saddling taxpayers with huge new interest payments for years to come. Some analysts also worry that foreign investors, the largest U.S. creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the United States as the bedrock of the global financial system.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/02/AR2009010202322.html

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Free money and no tax increases for the rich, happy days are here again.

[Syrinx]

1. you think?

Hundreds of billions of dollars handed out to the Bushes, and their cronies. Pretty soon it adds up to a lot of money.

[tclambert]

2. 2 million taxpayers lost jobs in 2008. Massive bailouts.

Sales figures dismal in all sectors.

Still, I predict Obama will add less to the national debt than George Bush did. I won't go as far as predicting he gets to a balanced budget, but I will predict a decreasing deficit, year by year.

[pretzel4gore]

10. there'll be cannibalism in america before too long

ours is the last generation that had power to stop the rot, but not only didn't we stop it, we made it 100 times worse. And even more, we exposed our entire species as something best put down like ted bundy with a hardon....
:rofl:
lol

[Callalily]

3. Yes unfortunately things

will get much worse before they get better.

With so many unemployed Americans, the tax base is shrinking, which leaves the debt burden to even fewer.

[SpiralHawk]

4. The putrid fruit of republiconomics

[Festivito]

5. With 1017B$ added last year and 675B$ this year in only 3 months...

It has to surge. And, these figures do not include 350B$ of the 700B$ not taken yet.

We had been borrowing between 500-600B$ per Bush year, that is each FISCAL YEAR. We're already over that top and in only three months.

It will be terrible for US if for Obama for the first time ever we won't be able to borrow what we need in order to pull ourselves out of a depression. But, since we have already turned to other countries to prop the current Bush administration's troubles and worthless behaviors, that source might be tapped as far as they want to give and we'll be SOL.

FIGURES ARE FROM MY OWN CALCULATIONS:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3668507&mesg_id=3669896

[Double T]

6. It's beginning to look a lot like business as usual, everywhere we go........

Borrowing from Peter, then borrowing from Paul and somehow we're eventually going to pay Mary? I don't think so!!!Are there any sane economists left in the 'house'? It is getting close to the time where we will bend over and kiss our economic asses goodbye.

[blue97keet]

7. Who did we borrow from to finance WW2?

[PM Martin]

8. Where will all of this money come from?

Some businesses need a bailout, such as the automotive industry, but not everyone can have a one.

[pretzel4gore]

9. that's why Obama was put in WHouse

you people! The rubicon was crossed forever when Ronald McDonald (aka regan) was foisted on USA(IOU)lol!...ferchrissake, regan was possibly the first US CinC who BRAGGED he had never read an entire book (if my memory serves) in entire school career. He was a 3rd rate actor who's most critical success was 'Bedtime for Bozo' and he ratted out members of SAG while he was its president.....sheese.