USA Deficit: $120 Trillion new debt to the Unborn

Posted: 2011/06/27 in Economy
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According to Congressional Budget Office (CBO) Report on Thursday, President Obama’s fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation’s economic output by 2020. US debt would top 101% of GDP by 2021, more than the value of everything produced in this country over the course of a year. By 2035, the publicly held debt, CBO says, could top an almost unfathomable 190% of GDP.

And that was the good news.

White House Office of Management and Budget (OMB) released this Feb. 1 projected a 10-year deficit total of $8.53 trillion. However, after CBO’s final analysis, released this Thursday, the Obama Administration’s budget would generate a combined $9.75 trillion in deficits over the next decade.

In a nutshell, the US federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it’s headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO’s deficit estimates. That is an additional $1.2 trillion dumped on generations – a $10,000 per household above and beyond the federal debt they are already carrying. This equals 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America’s debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.

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