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selfAdjoint
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When Bush leaves office in 2009, how will the federal deficit then compare with what it was when he took office in 2001?
Central banks are shifting reserves away from the US and towards the eurozone in a move that looks set to deepen the Bush administration's difficulties in financing its ballooning current account deficit.
The Treasury Department reported a budget surplus for the fiscal year, which ended on Sept. 30 [2001], of $127 billion, compared with $237 billion a year ago...
Excluding the Social Security system, the U.S. government ran a $33.52 billion deficit...
Though it also was the second-largest surplus in history, it was the first time since 1992 that the budget worsened...
WASHINGTON — As Congress started to digest a new Bush administration request of $80 billion to bankroll wars in Iraq (search) and Afghanistan, its top budget analyst on Tuesday projected $855 billion in deficits for the next decade even without the costs of war and Bush's Social Security plan.
It'll be payed for the same way the defecit Reagan and Bush racked up was payed for. Some sensible Democrat's going to come in, raise taxes a little bit, cut the rate of growth of the government by a lot (as Clinton did, then Bush made the Govt. grow at a huge pace again), and just do all the sensible things Clinton did and get it under control. Then, just as things are looking good, people are going to say "Hey, I want a damned tax cut, give ME an extra $300 a year baby, I could buy some ****ing tires or something!", then it'll all repeat all over again.polyb said:MORE TAX BREAKS, MORE WARS, MORE SPENDING!
WHO WILL PAY?
wasteofo2 said:It'll be payed for the same way the defecit Reagan and Bush racked up was payed for. Some sensible Democrat's going to come in, raise taxes a little bit, cut the rate of growth of the government by a lot (as Clinton did, then Bush made the Govt. grow at a huge pace again), and just do all the sensible things Clinton did and get it under control. Then, just as things are looking good, people are going to say "Hey, I want a damned tax cut, give ME an extra $300 a year baby, I could buy some ****ing tires or something!", then it'll all repeat all over again.
selfAdjoint said:The dollar will devalue of course, slightly if wise policies take place, or crashingly if Bush and company continue their folly. Sooner or late the Chinese and Japanese will wake up and reallize the bad effects to them of dumping dollars are outweighed by the prospect of being paid in shinplasters.
DAVOS, Switzerland (AP) -- China has lost faith in the stability of the U.S. dollar and its first priority is to broaden the exchange rate for its currency from the dollar to a more flexible basket of currencies, a top Chinese economist said Wednesday at the World Economic Forum.
At a standing-room only session focusing on the world's fastest-growing economy, Fan Gang, director of the National Economic Research Institute at the China Reform Foundation, said the issue for China isn't whether to devalue the yuan but "to limit it from the U.S. dollar."
A budget deficit occurs when a government's expenditures exceed its revenues for a given period of time. It is a measure of how much a government must borrow in order to fund its spending.
The deficit is calculated by subtracting a government's total expenditures from its total revenues. This can be done on a yearly or monthly basis, depending on the specific timeframe being analyzed.
A budget deficit can be caused by a variety of factors, including economic downturns, excessive government spending, and tax cuts. It can also be a result of unexpected expenses, such as natural disasters or wars.
A budget deficit can lead to an increase in government debt, which can result in higher interest rates and inflation. It can also limit a government's ability to fund important programs and services, and may require the government to cut spending or raise taxes in the future.
A budget deficit can be reduced through a combination of spending cuts, tax increases, and economic growth. Governments can also implement fiscal policies, such as austerity measures or stimulus packages, to help reduce the deficit. However, it is important to carefully consider the potential impact of these measures on the economy and society.