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| Thu, 02-19-2004 - 9:40am |
U.S. NATIONAL DEBT TOPS $7 TRILLION FOR FIRST TIME
http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20040218&ID=3408316
from Feb 20, 2003 GOVERNMENT HITS NATIONAL DEBT CEILING
http://www.cnn.com/2003/ALLPOLITICS/02/20/debt.limit.ap/
U.S. National Debt Tops $7 Trillion for First Time
February 18, 2004 6:09:00 PM ET
By Jonathan Nicholson
WASHINGTON (Reuters) - The U.S. government's national debt -- the accumulation of past budget shortfalls -- totaled more than $7 trillion for the first time as of Tuesday, according to a Treasury Department report.
In its daily financial statement released on Wednesday, the Treasury said the U.S. debt subject to a congressionally set limit totaled $7.015 trillion, up from $6.983 trillion on Friday. The government was closed on Monday for the Presidents Day holiday.
While passing the $7 trillion mark itself has little practical significance, not unlike a car's odometer rolling over, it may signal some tough political times for President Bush's administration on fiscal policy.
The government debt ceiling stands only a few hundred billion dollars ahead at $7.384 trillion, and Treasury would need Congress's blessing to borrow beyond that. Treasury officials say they expect the limit to be hit sometime between June and October.
And in this election year, Democrats may also use the $7 trillion figure to assail Bush's tax policy and the federal deficits on his watch. Budget shortfalls are met by borrowing. In 2003, the federal budget gap was a record $374.25 billion and a larger one is expected this fiscal year. Bush blames the deficits on a sluggish economy and needed spending on security and defense.
Rep. Baron Hill of Indiana, part of a centrist group of Democrats said, ``It is simply immoral to run a national debt exceeding $7 trillion, every penny of which our children and grandchildren will be responsible for paying back.''
A Treasury spokeswoman said there was ``no special significance'' to the number.
The last time that debt subject to the limit passed a trillion-dollar milestone was on June 28, 2002, according to Treasury records.
To give some idea of the size of the debt, U.S. gross domestic product -- the sum of goods and services produced inside the United States -- totaled about $11 trillion at the end of 2003, according to the Commerce Department.
The debt includes that held by investors and Treasury securities in trust funds for government programs such as Social Security and Medicare.
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I'm finding vastly different numbers on this on the internet.
The only thing we can do right now about the debt is to make sure Republicans don't succeed in making Bush's tax cuts "permenent" (I don't get how they'd do that anyway...couldn't the next administration just say "Nope, we're raising taxes"?)
Of course you would say that, and the truth is that the debt is "manageable" until it can't be managed. Then it's too late.
Renee
First, Bush is not an economist.
Second, during a telephone conference with six notable economists, Laura D’Andrea Tyson, said,“A few months ago when the Bush administration was trying to float the line tht deficits don’t matter—a line that they quickly backed away from because there was resounding criticism…” p 14, During a telephone conference with six notable economists, Laura D’Andrea Tyson, said,“A few months ago when the Bush administration was trying to float the line tht deficits don’t matter—a line that they quickly backed away from because there was resounding criticism…” p 14 http://www.epinet.org/webfeatures/viewpoints/economy_transcript_20030812.pdf
If you want to know what economists think of the present US economy, this site gives you a very reputable view.
<> The debt was never "retired", it was projected to be retired by 2004 if the US continued with Clinton's policies.
“In 2004, there was suppose to be a $360 billion surplus. Instead, we’re projgecting a $475 billion deficit. This is an $844 billion swing in one year.” P 7 http://www.epinet.org/webfeatures/viewpoints/economy_transcript_20030812.pdf
http://www.house.gov/budget_democrats/analyses/projections/debt_gdp.pdf
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