Now to make it perfectly clear... National Debt is the collective Debt owed by the Country over time.
Deficit Debt is the amount of Debt created just this year...
For example this years Deficit is $1.47 Trillion. This is the amount of money that exceeds revenues. So the Government is actually spending somewhere in the neighborhood of $4 Trillion this year and of that $1.47 Trillion is borrowed. They simply don't have it. This is astounding because it's 1.5x what the entire cumulative debt was in 1980!
The system has collapsed under it's own weight. And the Obama Solution is to continue to grow government and destroy jobs. The country is collapsing under Obama.
With no private sector growth there can be no revenue expansion. So spending can not increase without increasing the National Debt. It's pretty simple match actually.
The only solution is to quit spending more than you take in... and actually spend less so the National debt can be paid off. Sadly it can not be nor will it ever be paid off.
It's just a matter of "when" the inevitable collapse will come.
I would encourage everyone regardless of party affiliation to look at this reality... from the Associate Press and posted via Yahoo
----------------- Economic Reality ---------------------
WASHINGTON – New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.
That's actually a little better than the administration predicted in February.
The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.
The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012 — a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don't think the unemployment rate will drop to those levels until well into this decade.
"The U.S. economy still faces strong headwinds," the OMB report said. They include tight credit markets, a high inventory of unsold housing and retrenchment by state governments bound by balanced budget mandates. The European debt crisis has also had an impact.
"Despite these headwinds, the administration expects economic growth and job creation to continue for the rest of 2010 and to rise in 2011 and beyond," the report said.
The gaping deficits are of increasing concern to voters. But Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they await possible recommendations from Obama's deficit commission.
While there's a slight improvement in the deficit for the current year compared to the administration's February forecast, next year's predicted $1.42 trillion worth , next year's predicted $1.42 trillion worth of red ink — that's 37 cents of borrowing for every dollar spent — is looking worse. It's about $150 billion more than previously predicted, because of still-slumping tax revenues.
The current record holder is the $1.41 trillion deficit for 2009.
Economists agree that the most important measure of the deficit is against the size of the economy. Opinions vary, but many economists say a deficit of 3 percent of gross domestic product is sustainable since it would stabilize the overall debt when measured relative to the economy.
The report put the deficit at 10 percent of GDP this year and 9.2 percent of GDP next year. It would never reach the 3 percent figure under Obama's predictions — which underestimate war costs and depend on assumptions of tax increases that may not materialize.
OMB Director Peter Orszag said the numbers represent a "fiscal situation that requires attention."
Obama "has done little to confront this domestic enemy," said Rep. Mike Pence, R-Ind. "Washington desperately needs real leadership. We cannot continue to postpone the hard choices and sacrifices that are necessary to stop this fiscal train wreck."
Deficits have skyrocketed since the recession took hold in 2008 and Congress responded with a massive bailout of the financial system and last year's $862 billion stimulus measure.
"What we should be doing now is putting in place deficit reduction policies that will kick in after the economy has more fully recovered," said Senate Budget Committee Chairman Kent Conrad of North Dakota. "It is an unsustainable long-term course."
by lady_love1585 years ago
http://blog.heritage.org/2011/08/25/mor … a-economy/In true 1984 double speak the WH is pointing to the CBO report on the economy as proof their policies are working! Lol! Really? Working to do what? Destroy...
by qwark6 years ago
A billion:A billion seconds ago it was 1959!A billion minutes ago jesus alledgedly lived!A billion hours ago our ancestors were living in the stone age!A billion days ago no one walked upon the earth on 2 feet!Now,...
by Flightkeeper6 years ago
The nation's debt leapt $166 billion in a single day last week, the third-largest increase in U.S. history; the one-day increase for June 30 totaled $165,931,038,264.30 - bigger than the entire annual deficit for fiscal...
by MikeNV7 years ago
"The U.S. national debt hit $13 trillion today, a stratospheric number with looming implications for every citizen.With about 309 million people living in the U.S., the average American owns a $42,000 piece of debt...
by tobey1005 years ago
Over $14 trillion in deficitApproximately 99% debt to GDP ratioCan you spell depression?Credit rating downgrade9% unemployment20% real unemploymentGas prices skyrocketFood prices skyrocketClothing prices skyrocket1...
by wacknuts7 years ago
And what does it mean for us?
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