Cost of Bush Presidency - $11.5 Trillion

[Makalakumu]

Cost of Bush Presidency - $11.5 trillion.http://articles.moneycentral.msn.co...cost-of-the-bush-era-11-point-5-trillion.aspx

Over the past eight years, we've suffered calamities that were bound to damage the nation deeply: two recessions, the most lethal terrorist attacks ever on U.S. soil, the invasion of Iraq on dubious grounds, the near destruction of one of our most storied cities and, finally, the Wall Street meltdown.

It's a pretty fair article, but I think the estimate is way too low. They have not included the 8.5 trillion for the bailouts or that number would be pushing $20 trillion. And now it looks like this train will just continue to careen out of control. Does anyone else think that the US is on a crash course to spending ourselves to bankruptcy? When does this end? How does it end?

 

[arnisador]

It isn't just the U.S. We know that "The World is Flat" but not yet how to deal with that fact.

How much of this spending would have occurred anyway? Iraq is one t hing, but Afghanistan is different, for example.

 

[Makalakumu]

I don't know if its fair to say that much of this spending would have happened anyway. Decisions had to made in regards to spending every dollar. Decisions that could have been made differently. At any rate, I wonder if its just too much. No matter whether you agree or disagree with how the money is being spent. Maybe, its just too much.

 

[sgtmac_46]

Cost of Bush Presidency - $11.5 trillion.



It's a pretty fair article, but I think the estimate is way too low. They have not included the 8.5 trillion for the bailouts or that number would be pushing $20 trillion. And now it looks like this train will just continue to careen out of control. Does anyone else think that the US is on a crash course to spending ourselves to bankruptcy? When does this end? How does it end?

It doesn't end with the incoming administration, that's for sure!

Lets keep in mind that Presidents do not pass budgets, Congress does.....the President merely signs them.

We need to remember that Bush never saw a spending program he didn't like.....the Democrats should have really liked him more than they did.

The only way this can end is if we, as a country, develop some REAL spending discipline......and that's not going to HAPPEN!

I wouldn't be surprised to see another $10 trillion added by the time Obama and the Democrat Congress is finished.


Just put it on the national credit card.

 

[searcher]

I wouldn't be surprised to see another $10 trillion added by the time Obama and the Democrat Congress is finished.


Just put it on the national credit card.

And what about after the inaugeral festivities?:uhohh:

 

[Makalakumu]

Just put it on the national credit card.

That credit card is getting maxed out. China isn't buying our treasury bonds anymore. I don't see any alternative other then to drastically cut spending. People aren't prepared for this.

 

[Makalakumu]

I dug up a few statistics, but before I start, I want to make one thing clear. George W. Bush accelerated a spending spree that started decades ago. Obama will continue this spending spree. I don't think you can get elected President without promising to continue it. The difference comes about when you consider where money is actually being spent. That said, I'd like to limit the scope of this thread to whether or not we can have this spending spree in the first place. Where is the Federal Credit Limit maxed? When does this happen? When it happens, what then?

In 2000, when George W. Bush took office, the national debt was 5.8 trillion. In 2008 (1-20-09) when he leaves office, the national debt will have climbed about 10 trillion. See this table to trace the history of the national debt.

During the last quarter of 2008, the US GDP was 14.4 trillion. This means that the national debt at this time is fast approaching a time where it will exceed the GDP of the entire US economy. As the recession deepens and as the Obama administration continues spending, I suspect that we could see this happen by 2010.

Here's the effect of all this debt on the government's ability to continue spending. In 2008, according to the US Department of Treasury, 39% of tax revenue is being used to pay interest on the debt owed by the US government.

That number will continue to rise as the Recession deepens and more spending occurs. Eventually, we will come to a point where paying for ANYTHING becomes impossible. The government literally could go bankrupt.

This about this, as of right now 39% of all our taxes is going to do nothing more then service the national debt. It doesn't do anything productive. It doesn't build anything. It is directly transferred from our standard of living to other sources.

Who are these other sources?

According to this source, this pie chart breaks down the percentage of the debt owed by various creditors. Note that almost 2/3rds of the interest paid by our taxes goes directly to the Federal Reserve and other foriegn/international financial interests.

 

[AMP-RYU]

rediculous!

 

[CoryKS]

Bush presidency: $11.5 trillion
Making democrats pretend to be fiscally conservative: Priceless

 

[sgtmac_46]

And what about after the inaugeral festivities?:uhohh:

Obama has been proposing massive spending initiatives before even taking the oath....that should tell you something.

 

[sgtmac_46]

That credit card is getting maxed out. China isn't buying our treasury bonds anymore. I don't see any alternative other then to drastically cut spending. People aren't prepared for this.

You're absolutely right! But folks aren't going to support it.....we're not mentally geared for moderation and discipline as a nation.

 

[searcher]

You're absolutely right! But folks aren't going to support it.....we're not mentally geared for moderation and discipline as a nation.

Time for another depression. Time for a government bailout!!!!!

 

[Makalakumu]

I don't think there will be another bailout. Our credit card is maxed out. President Obama is going to have to deal with a limited budget. It's either that or completely ruin this country through inflation. Can you imagine emissaries from the US government groveling to the IMF or the World Bank in order to write down our interest rates?

It sounds ridiculous, but when you consider the amount of debt that has been run up and exactly how much money just paying the interest takes, it's a notion that becomes more serious.

 

[Cryozombie]

Why dont we just get a loan from Bill Gates?

 

[sgtmac_46]

I don't think there will be another bailout. Our credit card is maxed out. President Obama is going to have to deal with a limited budget. It's either that or completely ruin this country through inflation. Can you imagine emissaries from the US government groveling to the IMF or the World Bank in order to write down our interest rates?

It sounds ridiculous, but when you consider the amount of debt that has been run up and exactly how much money just paying the interest takes, it's a notion that becomes more serious.

Controlling spending does NOT remotely seem to be on Obama's agenda, however......in fact, if we look at his campaign promises, we see nothing but MASSIVE government spending projects on the horizon.

In fact, the answer we seem to be getting from the Democrats is to put the entire country on some sort of government assistance program.

The smart and reasonable thing to have done would have been to let the economy sort itself out, reign in out of control spending and balance the budget.......but that line doesn't generally get folks elected!

 

[Brian R. VanCise]

Spending at some point has to be reigned in tightly. All the pork projects for this Democratic Senator and this Republican Senator or house members has to stop. Unfortunately we all see the need for this but our representatives are like children with a cookie jar. They may have been told not to eat the cookies but they cannot help themselves. (almost all of them are pathetic)

 

[sgtmac_46]

Spending at some point has to be reigned in tightly. All the pork projects for this Democratic Senator and this Republican Senator or house members has to stop. Unfortunately we all see the need for this but our representatives are like children with a cookie jar. They may have been told not to eat the cookies but they cannot help themselves. (almost all of them are pathetic)

Nobody gets elected promising to end pork, unfortunately.

 

[JadecloudAlchemist]

From the Art of war by Sun Tzu:

"When you do battle,even if you are winning,if you continue for a long time it will dull your forces and blunt your edges. If you besiege a citadel your strength will be exhausted.If you keep your armies out in the field for a long time your supplies will be insifficient."

"When resources are exhausted, then levies are made under pressure. When power and resources are exhausted then the Homeland is drained.
The common people are deprived of 70 percent of their budget,while the government's expenses for equipment amount to 60 percent of its budget."

This was known over 2,000 years ago.

 

[Makalakumu]

Controlling spending does NOT remotely seem to be on Obama's agenda, however......in fact, if we look at his campaign promises, we see nothing but MASSIVE government spending projects on the horizon.

In fact, the answer we seem to be getting from the Democrats is to put the entire country on some sort of government assistance program.

The smart and reasonable thing to have done would have been to let the economy sort itself out, reign in out of control spending and balance the budget.......but that line doesn't generally get folks elected!

Yeah, Obama has a lot of spending planned. In fact, from what I've read, he'd like to run trillion dollar defecits for years. What I'm wondering is when does the bottom drop out? When have you literally spent all of the wealth you have as a nation? Whether you agree or disagree with Obama's priorities, what if it just isn't possible to spend the money like that? When I look at the numbers I posted earlier, it becomes obvious that there really might be a spending limit. A limit that is reached when tax revenue is being diverted so quickly to pay interest on debt that you no longer can perform the obligations of the government. Third World countries reach that limit. Can the United States?

 

[sgtmac_46]

Yeah, Obama has a lot of spending planned. In fact, from what I've read, he'd like to run trillion dollar defecits for years. What I'm wondering is when does the bottom drop out? When have you literally spent all of the wealth you have as a nation? Whether you agree or disagree with Obama's priorities, what if it just isn't possible to spend the money like that? When I look at the numbers I posted earlier, it becomes obvious that there really might be a spending limit. A limit that is reached when tax revenue is being diverted so quickly to pay interest on debt that you no longer can perform the obligations of the government. Third World countries reach that limit. Can the United States?

Not sure.....but I have a suspicion we're about to find out!