Annie
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CBO report: Debt will rise to 90% of GDP - Washington Times
There's reasons for the continuing stories:
US 7-yr debt auction flops among nervous investors | Reuters
We're in the best of hands...
CBO report: Debt will rise to 90% of GDP - Washington Times
Friday, March 26, 2010
CBO report: Debt will rise to 90% of GDP
David M. Dickson
President Obama's fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation's economic output by 2020, the Congressional Budget Office reported Thursday.
In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president's budget would generate a combined $9.75 trillion in deficits over the next decade.
"An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference," said Brian Riedl, a budget analyst at the conservative Heritage Foundation. "That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying."
The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.
That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America's debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year....
There's reasons for the continuing stories:
US 7-yr debt auction flops among nervous investors | Reuters
US 7-yr debt auction flops among nervous investors
Thu Mar 25, 2010 11:12pm IST Email | Print | Share | Single Page [-] Text [+]
NEW YORK, March 25 (Reuters) - The third time was not a charm for the U.S. government to raise money in the bond market this week, stoking anxiety over whether investors have started to tire of new Treasury issues.
Bond managers gave a cold shoulder to the Treasury Department's $32 billion seven-year debt sale on Thursday, the week's final note sale following a mediocre $44 billion two-year auction on Tuesday and a weak $42 billion five-year sale on Wednesday. For more see [ID:nTAR000170].
Overall bidding at the latest seven-year auction was the lowest in 10 months. The auction's bid-to-cover ratio was 2.61, down from 2.98 at the February auction...
We're in the best of hands...