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Deficit Surges To New High

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Amerika grows wealthier by the day

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Deficit Surges to New High, $1.38 Trillion

The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year.

The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits. Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the recession is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control.

However, Republican critics contend the administration does not have a credible plan to address future deficits. Private economists worry the country could face the grim prospect of seeing interest rates soar in future years and the dollar weaken as foreigners dump their U.S. holdings.

The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through the recession and massive spending needed to stabilize the banking system.

:lol::lol::lol:

well I dont believe you Tim

and neither do the Chinese

how long before everyone else wakes up

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I think you are all being too pessimistic. It was only a short time ago when the us national debt was forecast to shrink dramatically.

_411973_us_debt_300.gif

http://news.bbc.co.uk/1/hi/business/411973.stm

Interesting graph, what the graph then fails to show is it going back up again after 2010 when the baby boomers retired. Greenspan stated that the US would need to borrow at least $1tr in 2010 to cover the retirement needs.

Remember that this figure of $1tr was when the US assumed it would be rolling in money and growth and NOT facing a depression.

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