RSSU.S. National Debt 2008
Between September and October 2008, the Total U.S. National Debt increased by nearly one trillion dollars, or about 10% of the outstanding debt. Most of this increase is due to public borrowing to finance the Wall Street Bailout plan. The additional borrowing on top of the mandatory increases in programs such as Social Security (which will increase payout by 5.8% in January of 2009) represents a significant loss in financial flexibility which makes the problem of persistent deficit spending even more difficult to solve.
At the current rate, the national debt is increasing by nearly 4 billion dollars every day! See our National Debt Clock.
5 Responses to “U.S. National Debt 2008”
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November 3rd, 2008 at 4:33 pm
You’re missing perhaps a trillion dollars in foreign trade deficit debt that is also rising annually and that will be owed exclusively to foreign governments/businesses. Although this is not part of national debt per se, it does affect the value of the dollar in international monetary markets.
The risk foreign sovereign investment funds pose to buy up American companies and hard assets is an imminent threat to our future, as much or more so than the federal budget deficit spending trend that will evolve over the next 20 years.
I hope that a combined analysis of the trade and budget deficit impact on our nation’s ability to stabilize the value of the dollar relative to other international currencies is examined and considered too.
November 3rd, 2008 at 4:38 pm
As a $700 Billion bail out is funded, our national deficit will surge. Although it appears that Mr. Perot advocated this measure, did he consider how these funds would be used, or argue for limitations on exec comp and benefits, as well as the limitation on paying these funds out as preferred or common stock dividends?
It’s obscene to see the bail out funds used to fund bloated executive comp deals. Goldman Sachs debt to execs exceeded the $10 B it was allocated by more than $1.3 B, and now we’re seeing preferred dividends being paid out by these banks to their richest shareholders as if the loss of earnings never happened. The average American taxpayer just got raped in my opinion.
November 3rd, 2008 at 4:47 pm
As we examined the average tax rate incurred for the past 50 years we see that it is approximately 18%. How does this reflect the average tax burden of the average American wage earner? The average american wage earner paid roughly 7% in FICA taxes on top of his income tax. Companies paid in a matching 7%.
How does the average rate seem to reflect a net tax burden of only 11%? What has the upper income strata of America paid in comparison to the total tax rate burden of average americans?
Opponents have argued that raising the upper income tax levels on the rich in our society would be redistribution. I believe that the trickle down theorists that have insulated the rich from paying their fair share are wrong; we have not seen this. In fact we have seen the rich grow far richer, and the middle class and lower income levels lose more and more of their earnings.
I advocate that a restructuring of tax rates must include a flat FICA tax that is unlimited on all, despite the limitations in benefits that will be paid.
November 6th, 2008 at 2:48 am
THE CAPITAL OF GOODWILL
There may be additional value in the Obama win for a period of time.
Goodwill may mean a deeper well to borrow from to fix the economy.
http://pacificgatepost.blogspot.com/2008/11/americas-obama-capital.html
November 10th, 2008 at 5:06 pm
Ross, what would really happen if the Feds didn’t step in to bail all these WallStreet thieves out? Our dollar is backed by faith, how much faith is left? Sheesh, they’re going to run out of paper, granted it’s all electronic transfer so maybe not. But man, I just don’t see how catastrophic inflation isn’t a forgone conclusion at this point.
Thanks for always being the voice of reason Ross, I voted for you last time and I’ll vote for you again in whatever efforts you undertake. I wish we had millions more like you, people today just aren’t too bright and too many want handouts! UGH!