Thursday, May 27, 2010

The runaway spending

The Federal Government is on a roll. Spending money like there is no tomorrow starting with the Stimulus Package (which is debatable if it was that necessary ) to the continuous stream of stimuli coming out of Washington, the latest being the business and job bill that will add almost 100 billion dollars to the Federal Debt. I don’t really understand how the hell we are going to pay for all of this when the economy is not growing that fast. We have not raised any taxes and spending has not been cut, so where is the money coming from. The answer the institutional and overseas investors (namely China and Japan) in the form of buying our Treasury securities. There is going to a time not in the distant future that our interests alone our debt will easily exceed 1 trillion dollars.

I just thought that maybe we will have a sensible government in Washington which will try to reduce the debt and the deficit but I don’t see anything of that sort yet. I am hoping against hope that somebody responsible will be able to start addressing our huge debt, unless we want to look like Greece, because even with our huge exports and resources, we would not be able to grow and continue funding our programs if we can’t find funds to pay for it from our own resources.

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