Tuesday, August 25, 2009

What Trillion Dollar Deficits Mean

By Jeff Diamond - The OMB now projects a deficit of $9 trillion by 2019, but if you really want to understand what that means just consider that 80 percent of the deficit in 2019 will go to interest expense! Yes, 80 cents of every tax dollar will be going to service our debt... As the excellent blog ZeroHedge points out, "We are now officially a vassal state of China."

No doubt that the wars in Iraq and Afghanistan have contributed to our national debt, but it was really the reckless banks overseen and egged on by a reckless Federal Reserve that caused the financial crisis and the gargantuan bailouts.

Enjoy the stock market rally while it lasts... We have paid dearly to engineer this pop in the markets... But, hey, at least Ben Bernanke gets to keep his job!