White House set for backlash on national debt

The Obama administration is bracing for a political backlash on Tuesday when it issues national debt numbers showing federal debt rising by $9,000bn over the next decade – significantly higher than the forecast it made earlier this year.

The revision, which will add $2,000bn (€1,400bn, £1,200bn) to the White House’s initial projection made in February, comes amid growing public jitters about the scale of US nat­ional debt, with one recent opinion poll showing Americans giving higher priority to reducing deficits than to reviving the economy.

According to Goldman Sachs, the need for a new stim­ulus will be most acutely felt in 2011 when the combination of the expiration of the tax cuts George W. Bush enacted in 2001 and 2003 and the withdrawal of the stimulus will reduce GDP growth by 1.6 per cent.

Some economists believe the growing likelihood of tax increases a few years from now to mitigate the deficit may discourage consumer spending and business investment today.

The prospect of sustained large deficits also makes it harder for the US central bank to provide further monetary stimulus. Inflation concerns have been raised by the combination of large projected deficits and unorthodox Federal Reserve actions. Foreign investors in particular worry that the Fed will end up monetising government debt over the medium term.

www.ft.com...

I wonder if the stock markets will bother reflecting any of this data, or will they continue to pretend all is well and improving?

they still think it's all ok... case shiller says houses are going up in price... tchyeah righty... the market just gets further away from the fundamentals, the reality... and one thing that will always be true, eventually, it returns to the fundamentals... still too many ostrich investors out there

Since I don't bet I'll predict instead.

All is well. All will be well.

The following will be reported on the nightly journalistic entertainment hour...

Your money is safe. Your government loves you. Your health and welfare are top priorities for corporations and businesses. We won't be killed by a manufactured virus. Last but not least, politicians are your friends.

And, mercury actually aides human ascension to the next dimension.

im about ready to do some local protesting ...

reply to post by Hazelnut


Thank you. Now I can sleep at night again and dream of sugar plums and stacks of money in my bank!! I will immediately head to the beach and buy up land for condo's!!

Zindo

reply to post by warrenb


It will be deemed a matter of Obama's inheritance. ( I despise that word in regards to American government...he is the president, not the king :mad

And it appears that he is not handling his "inheritance" all that well. Again, let's blame it on KING George W. Bush, never mind the 535 princes and princesses that were in the "court" at the time. Nor the previous rulers that paved the way for the current situation.

Vote them ALL out...!

reply to post by pyrytyes


Don't forget all them there Czar types now in power with no oversight! They're the ones I'm against and worry about!

Zindo

reply to post by ZindoDoone


Yikes! My bad...I did forget about them folks ( can't spell what I mean).

My apologies, forgive my oversight...I promise to do better in the future. I hate omitting people that have influence. So, that makes 13, or so, more folks that determine the fate of our well being?

reply to post by warrenb


In lame words, the Depression will keep deepening, job lost will keep growing and with less taxable income to gouge the workers tax cuts will have to stay, still is no money to fix the deficit and the nation will keep begging for countries to buy our debt.

So there you go, the future is not better that the present situation we got now.

Could this means a government collapse?

Bread and circus. As long as most people can eat and be entertained, they won't care what the government is doing.