Posts Tagged ‘federal deficit’
Brazil is the fourth largest sovereign creditor of the US, holding more than $200 billion in Treasuries, which is good news for Brazil, since its economy has been growing enough that the country can do so:
Brazil, the region’s economic powerhouse, which just a decade ago had to come to Washington to ask the International Monetary Fund for a bailout, is now the United States’ fourth-biggest sovereign creditor — holding about $211 billion in U.S. Treasury securities, according to U.S. data from May.
As you may recall, a little over two years ago, Lula, then-president of Brazil, was lecturing President Obama about the dangers of protectionism and the benefits of free trade. Unfortunately Obama didn’t listen, and
These days, Latin America’s economy as a whole is expected to expand about 4.7 percent in 2011 — almost twice the expected rate in the United States — thanks to strong demand for the region’s commodities and a decade of mostly prudent fiscal management, itself the product of many hard-learned lessons of the past.
Hence, we have a chorus of clowns mocking the US economy,
“When did the American dream become a nightmare?” gloated Argentina’s President Cristina Fernandez, whose own country defaulted on about $100 billion in debt a decade ago.
In a speech at the Buenos Aires Stock Exchange on Monday, she contended that Argentina had prospered since then by focusing on exports and controlling financial speculation — a lesson that Washington has yet to learn, she said.
Cristinita forgot to mention that she raided private pensions a few years ago (2008) to avoid default.
Cristina’s soul mates Evo and Hugo are using the US debt for propaganda purposes,
Washington’s biggest critics in the region, such as Venezuela’s Hugo Chavez and Bolivia’s Evo Morales, have also portrayed the crisis as an inevitable outcome for a country that failed to follow its own financial advice and overextended itself militarily — in Latin America, and elsewhere.
yesterday, the Washington Post reported that Bolivian president Evo Morales had announced that a local program called “Bolivia changes, Evo delivers,” which “is under his control and has little legislative or administrative oversight,” would no longer depend on Venezuelan largess, but would be funded by the Bolivian government.
Here in the USA, Congressman Connie Mack, Chairman of the Western Hemisphere Subcommittee Connie Mack, has proposed legislation which would
cease aid to those countries which harm America’s freedom and security.
Mack’s five amendments would:
- Eliminate foreign aid funds for Argentina, Venezuela, Nicaragua, Ecuador, and Boliviia
- Cease U.S. contributions to the Organization of American States.
- Eliminate U.S. funding for Global Climate Change Initiative Activities.
- Establish a Congressional recorded vote which states “The delay in the authorization of the Presidential Permit is threatening the economic and national security benefits of the Keystone XL Pipeline.”
- Name Venezuela as a state sponsor of terrorism due to its continued material and financial support of the Revolutionary ArmedForces of Colombia (FARC), Hezbollah, the National Liberation Army (ELN), and the Iranian Revolutionary Guard Corps (IRGC).
Meanwhile, out-of-control government spending, onerous regulations on businesses, and uncertainty regarding the currently hostile environment on private enterprise does not bode well for the US economy – and that has the Hemisphere’s economies worried.
Cross-posted at Real Clear World
Over to you, Don,
1. There is no budget.
2. There was no budget last year.
3. Congress last passed a budget in April 2009.
4. It was signed into law by Barack Obama, not George Bush.
5. A Democratic Congress and a Democratic president extended the “Bush tax cuts” for two years (2011 and 2012).
6. There is a $2.5 trillion surplus in the Social Security Trust Fund — more than enough to pay Social Security uninterrupted.
8. Tax receipts are enough to adequately service the debt without raising the debt ceiling.
9. This means talk of stopping Social Security checks, not paying Medicare bills and even default are irresponsible.
10. The president does have the power to do those three things — but it his decision, not Congress or the creditors of the United States.
11. The Republican House has passed a budget, which the Democratic Senate rejected.
13. Congress, not the president, sets the budget.
Just the facts.
From the White House, National Journal’s Marc Ambinder reports that Obama believes he can get the Republicans to cave on taxes if he first lets the bond markets panic in late-July. Obama then hopes that Wall Street and the U.S. Chamber of Commerce will force Speaker John Boehner, R-Ohio, to compromise, like he did on the FY 2011 budget deal earlier this year.
Explaining the debt in beer terms we can all understand,
The national debt jumped by $72 billion on Tuesday even as the Republican-led U.S. House of Representatives passed a continuing resolution to fund the government for just three weeks that will cut $6 billion from government spending.
If Congress were to cut $6 billion every three weeks for the next 36 weeks, it would manage to save between now and late November as much money as the Treasury added to the nation’s net debt during just the business hours of Tuesday, March 15.
Congress would need to cut spending by $6 billion every three weeks for approximately the next six and a half years (338 weeks) just to equal the $676.3 billion the debt has increased thus far this fiscal year.
Simple and to the point, by economic professor Anthony Davies,
Out of control spending is the issue.
Doing some more travel today. Regular blogging will resume later.
“We estimate that if current laws remain unchanged, the budget deficit this year will be close to $1.5 trillion, or 9.8 percent of [gross domestic product]. That would follow deficits of 10 percent of GDP last year and 8.9 percent in the previous year, the three largest deficits since 1945. As a result, debt held by the public will probably jump from 40 percent of GDP at the end of fiscal year 2008 to nearly 70 percent at the end of fiscal year 2011.”
Here’s the truth: The government spending is totally unsustainable.
Israpundit reminds us,
The 111th Congress Added More Debt Than First 100 Congresses Combined: $10,429 Per Person in U.S.
It was historic.
Barack Obama tripled the national deficit in one year. When Speaker Pelosi took over Congress the national deficit was $162 billion. When she exited in 2011 as Speaker it was at $1.29 Trillion dollars.
Obama topped a trillion dollars his second year, too.
Spending was up 84% under Obama.
In today’s WSJ,
S&P, Moody’s Warn On U.S. Credit Rating
The U.S. currently has a triple-A rating with a stable outlook at both agencies.
“The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar” to fund its deficits, Carol Sirou, head of S&P France, said at a Paris conference Thursday. “But that may change. We can’t rule out changing the outlook” on the U.S. sovereign debt rating in the future, she warned. She added the jobless nature of the U.S. recovery was one of the biggest threats to the U.S. economy. “No triple-A rating is forever,” she said.
The Heritage Foundation recommends, No Debt Ceiling Raise Without Spending Cuts
Just yesterday, The Heritage Foundation released the 2011 Index of Economic Freedom which showed that the irresponsible spending habits of the last Congress had once again pushed the United States down the international ranking to #9, behind nations such as Denmark, Canada and first-place Hong Kong. The Index showed that runaway spending posed the greatest risk to our economic freedom, and thus our ability to reduce poverty and create economic growth. The U.S. can turn things around and continue to be a leader of this prosperous free world, but first we have to get our own bad spending habits under control. The debate over the debt ceiling provides the perfect opportunity to put us on this path.
We have time, there are options available, but action is necessary. Raising the debt ceiling, without also addressing our federal government’s spending problem, would be, as one Senator once said, “a sign of leadership failure.”
That Senator, by the way, was Barack Obama.