The US fiscal house is in disorder

[Flatlander]

The Senate voted 52 to 44 yesterday to let the government borrow an additional $800 billion to head off a fiscal crisis that could occur when the $7.4 trillion national debt ceiling is reached in the next few days.

According to the article referenced, the US national debt has increased by 39% since President Bush first took office in 2000, when this new money is factored in.

What needs to happen to stop the economic bleeding? It has become this serious:

Republicans warned that failure to raise the limit would prevent the government from sending out Social Security checks and providing necessary services.

What economic horrors await the US population when this $800 Billion is spent? The budget deficit was more than $400 billion in 2004. At that rate, this new money will be gone before 2007, with nearly 2 years left in the Bush mandate. What changes need to be made? How can this government change directions within the next 2 years to keep the operation running?

 

[PeachMonkey]

How can this government change directions within the next 2 years to keep the operation running?

Given American tradition over the past two decades, we will continue to take less money from those who can best afford it, spend more and more money on weaponry and corporate handouts, continue to deprive those most at need, and hand off the problems of debt for future generations to suffer under.

 

[loki09789]

According to the article referenced, the US national debt has increased by 39% since President Bush first took office in 2000, when this new money is factored in.

What needs to happen to stop the economic bleeding? It has become this serious:
What economic horrors await the US population when this $800 Billion is spent? The budget deficit was more than $400 billion in 2004. At that rate, this new money will be gone before 2007, with nearly 2 years left in the Bush mandate. What changes need to be made? How can this government change directions within the next 2 years to keep the operation running?

I am spitballing here, but I would say that the war effort is a HUGE drain and the Emergency relief toward SE USA because of the hurricanes, Disaster relief to NYC, increased welfare/social services benefits being used because of many reasons that would include an always aging Baby boomer generation, .... all are going to be part of the increase in Debt. It coincides with the BUSH term in office and his choices have/will impact that debt too.

I don't care who was in office, I think there would have been an increase in the debt due to these events.

Resolved in 2 years....HA! When was the national debt ever really resolved?

 

[raedyn]

149.5 BILLION dollars spent directly on the war in Iraq to date. And another $77 millon per day. See a live clock of how much it is costing American taxpayers
here.

A good chunk of money is being spent on this. But it certainly doesn't account for the entire deficit.

 

[Flatlander]

I am spitballing here, but I would say that the war effort is a HUGE drain

Recall, Paul, that this war on terror has no definite end in sight.

and the Emergency relief toward SE USA because of the hurricanes,

These are the norm, expect more to come.

Disaster relief to NYC, increased welfare/social services benefits being used because of many reasons that would include an always aging Baby boomer generation, .... all are going to be part of the increase in Debt. It coincides with the BUSH term in office and his choices have/will impact that debt too
I don't care who was in office, I think there would have been an increase in the debt due to these events..

You are correct about these things, and I would be unreasonable to blame the cicumstances on Bush. However, his response to those circumstances is a different story.

Resolved in 2 years....HA! When was the national debt ever really resolved?

I was referring to the annual deficit, not the comprehensive debt. The deficit must be addressed before the debt can be an issue. On that topic however, let's remember that as the debt accumulates, the interest payments continue to rise, thus squeezing subsequent budgets further.