Comments on this post - please leave your e-mail address
HERE ARE A FEW WORDS OF PAIN.
Federal deficit predicted to hit $1.76 trillion in next decade
By Associated Press | August 18, 2006
WASHINGTON -- The federal deficit will total $1.76 trillion over the next decade, and could be double that estimate if President Bush's tax cuts are made permanent, the Congressional Budget Office said yesterday.
The $260 billion deficit forecast for the current budget year, which ends Sept. 30, is $112 billion below the office's last estimate, in March.
The bulk of the improvement came from a gusher of tax revenues this year, reflecting a rebounding economy and healthy corporate profits.
But the budget office forecast the improvement as short-lived, projecting the gap between revenues and spending will rise to $286 billion in 2007 and total $1.76 trillion over the next decade.
The deficit picture, according to the budget office, would be even worse if Bush succeeds with a top domestic priority, persuading Congress to make permanent the tax cuts of his first term.
They are set to expire at the end of 2010.
Extending the cuts through 2016 would add $2.2 trillion to the deficit.
The cost would climb to $3.26 trillion if a permanent fix is made to the alternative minimum tax, which is designed for the wealthy but is ensnaring more middle-income taxpayers.
What's funny is that a country like Russia, yes Russia, think about that, is fiscally in better condition than the US and most of the G8 countries. No wonder the US and their european and japaneese US colonies, don't want to let in Russia in the World Trade Organisation. It's not just the US that is in dire straits. It's all the G8 countries.
If Bernanke touches on the Federal Deficit, he would be stuck with a nightmare that could only be resolved by printing more greenback to repay the the overseas creditors, namely, the institutional investors or the central banks of the Far East, and that would trigger off a violent inflation which is something Bernanke trying to avoid to day everyday. he would be another Alan Greenspan trying to not to solve the problem but delaying the looming recession to occur in the U.S. or worldwide at large h=but by so doing, he is against the market forces and would only build up more pressure to one point when a full force outbreak would come and by then, it would ba a Catastrophe for the World.
Steven Soh
That hypocrit Bernanke is praying for more inflation. That's the truth about the FED, bankers and governments. They just love inflation. It allows to erase the debt and screws to death the creditors. The lenders get shafted big time. Want some advice? Sell all your bond holdings. And if your pension plan and your insurance company hold 30 year bonds, sue them!
What deficit? The intellectual deficit of George W. Bush you mean ?
Not to worry. Ronald Reagan had Alzheimer. Don't worry. Be happy!
Commenting by HaloScan
