Some “Mind Boggling” Numbers From the United States

Posted by Michael Campbell - Money Talks

Share on Facebook

Tweet on Twitter

A couple of mind boggling numbers out of the states. Annual spending in the US exceeds the 2007 levels by a trillion dollars a year, which causes me to believe its going to be next on plate for a sovereign debt crisis. Keep in mind though, despite the increase in spending they have a slow economy so the revenues basically haven’t really changed since 2007 despite the dramatic increase in spending. So what do you get when you increase spending by a trillion a year, year after year when your revenues don’t increase? Dramatic budget deficits thats what you get. 1.4 trillion in 2009, 1.3 trillion in 2010, 1.3 trillion 2011, and another 1.3 trillion forecast for 2012.

That 4 year increase in borrowing, to make it a little more real, amounts to $55,000 per US  household. Or to put it another way, a broke US government bought 100 million Americans a brand new luxury car with that 5.3 Trillion in budget deficit borrowed money.

US treasury is trying to borrow all its money short term because short term interest rates are low. Wait till those rate go up, and they will at some point. President Obamas budget this year was voted down by the entire Congress both Democrat and Republican by 414-0. Nor has a budget been passed in the US for 3 1/2 years, The U’S has now has a debt to GDP ration of 80%, double what it was in 2008. And that doesn’t include state and municipality debt!  What’s interesting about that is its a larger percentage point increase in debt to GDP than Greece from the end of 2008 to today. Greece is supposedly the planets basket case and the US is doing worse!.