I wonder once we default, send the world into a depression or both which states China will decide to annex? California? So then movies will say made in China. I support tax increases and program cutting when used for the right reasons and after being thoroughly examined with other alternatives. America is ____________. (Insert word you feel is appropriate) At minimum bankrupt. Nine trillion dollars needs to be paid. The best situation we could hope for would be an exponential increase in job creation. But, we all know that will not happen.
Jobs are still being move to other countries and those that more people have to chose from are low paying part time with no hope for the future. I feel that it is time to say that capitalism is now in the category of socialism and communism. There is the ideal of what the creator was thinking when the idea was originally conceptualized and what reality demonstrates. True capitalism is never going to happen and we have been shown what we have is an illusion.
I remember the politicians saying that deficit spending was a good thing and not to worry. I think that was the Reagan administration. Anyone who still believes that one is an delusional idiot who's myopic view is leading the US to its demise. I would rather live in a creditor nation than a debtor nation. The money we are hemorrhaging in interest to other countries could be spent on making America better. Mark my words, America is heading for a very dark time.


http://detnews.com/article/20090822/POLITICS03/908220345/1020/$9T-federal-deficit-forecast

$9T federal deficit forecast

Jim Kuhnhenn / Associated Press

Washington -- The Obama administration expects the federal deficit over the next decade to be $2 trillion bigger than previously estimated, White House officials said Friday, a setback for a president already facing a Congress and public wary over spending.

The new projection, to be announced on Tuesday, is for a cumulative 2010-19 deficit of $9 trillion instead of the $7 trillion previously estimated. The new figure reflects slumping revenues from a worse economic picture than was expected earlier this year. The officials spoke only on the condition of anonymity ahead of next week's announcement.

Ten-year forecasts are volatile figures subject to change over time. But the higher number will likely create political difficulties for President Barack Obama in Congress and could create anxiety with foreign buyers of U.S. debt.

Earlier this week, the White House revealed that it expects a budget deficit for the fiscal year ending Sept. 30 to be nearly $1.6 trillion.

That figure was lower than initially projected because the White House scratched out $250 billion that it had initially added to the budget as a bank rescue contingency. The administration ultimately did not ask Congress for that money.

Still that number, together with the 10-year projection, represents a huge obstacle for an administration trying to undertake massive policy overhauls in health care and the environment.

Economists predict a slow recovery from the recession, further testing Obama's goal of cutting the deficit to $512 billion in 2013. Even as he seeks higher revenues to pay for new climate change and health care measures, the president could face pressure to increase revenues or make deep spending cuts to tame the deficit.

Earlier long-term estimates released in February and May relied on now-outdated projections of economic growth.