Interest Rate Roundup

Tuesday, January 06, 2009

Trillion dollar deficits as far as the eye can see?

That seems to be what we're being prepared to expect, based on the latest commentary out of Washington. An excerpt from the Washington Post:

"After meeting with his economic team earlier today, President-elect Barack Obama predicted this afternoon that the United States would have trillion-dollar budget deficits "for years to come."

"Obama said that Peter Orszag, Obama's choice to head the Office of Management and Budget, forecasted that the United States would have a budget deficit of $1 trillion "even before we start the next budget."

"We have already, that we are already looking, at a trillion dollar budget deficit or close to a trillion dollar budget deficit," Obama said. "And that potentially we've got trillion dollar deficits for years to come even with the economic recovery that we are working on at this point."

"Nonetheless, Obama said, "We are going to have to spend money to jump-start the economy."
The president-elect has proposed a jobs-heavy economic stimulus plan that could range in cost from $850 billion to $1 trillion."

I just hope our children -- and our children's children -- will forgive us for this massive burden that Washington politicians are putting on their shoulders. More importantly for the here and now, we better all hope our foreign creditors will continue to gleefully finance our profligacy. The past few days haven't been so kind to long-term Treasuries, as I noted recently.

1 Comments:

  • I hope our children and theirs forgive any of us who voted to re-elect any Washington incumbent. They are the ones who could have kept us out of this mess. It does no good to vote for "my" incumbent because virtually everyone else would be doing the same. Only by throwing all of them out is there any hope of reversing such damage, IMO.
    Chip

    By Anonymous Anonymous, at January 6, 2009 at 8:27 PM  

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