Greenspan : US lost deficit control

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By Paul Carrel
Sun Sep 25, 4:32 AM ET



WASHINGTON (Reuters) - U.S. Federal Reserve Chairman Alan Greenspan told France's Finance Minister Thierry Breton the United States has "lost control" of its budget deficit, the French minister said on Saturday.
"'We have lost control,' that was his expression," Breton told reporters after a bilateral meeting with Greenspan.

"The United States has lost control of their budget at a time when racking up deficits has been authorized without any control (from Congress)," Breton said.

"We were both disappointed that the management of debt is not a political priority today," he added.

Ministers from the Group of Seven rich nations on Friday called for vigorous action around the world to curb rising imbalances in international trade and investment accounts

Bush has managed to break all records for incurring deficits

The national debt is somewhere around 7.8 billion. Government revenue totaled $1,146.8 billion in 2004. The interest expense, alone, on the national debt amounted to $321.6 billion for the 2004. That means that 28.0% of our available tax revenue went towards paying the interest on the national debt.

With Medicare in terrible shape, and eventually Social Security, we have a problem.

In the meantime we have the Iraq war costing 15 billion a month, and now Katrina, 200 billion, and then Rita.

Then it was decided that United would be allowed to default on it's pension obligation, and the federal pension protection agency absorbed that debt. Four other airlines are in line to do the same thing. Now that the precedent has been set, how far behind can the other major corporations be???

Don't worry, the corporations are benefitting from the generous tax cuts afforded them in order to stimulate the economy, so the "haves" won't be coming to the rescue. The big oil companies have been granted tax break windfalls with the new energy bill; what else would we expect?? The tax cuts, which were allegedly for the benefit of all Americans have further lined the pockets of the wealthy. It's the same old thing all over again: "The rich continue to get richer and the poor continue to get poorer."

The deficit for 2005 will be around 400 billion; so that will be added to the national debt, and bring it up to 8.2 trillion.

The estimated population of the United States is 297,266,254
so each citizen's share of this national debt is $26,691.47.

I guess I better start buying some gold bricks to put under my mattress!

If 28% of the tax dollar goes to paying interest and 50% goes to defense, then that shows you why there's not much left for infrastructure, education, health care, etc.

Which is more economical, to prevent catastrophe or pay for it afterward? Bush says we will cut programs to pay now, but the handwriting on the wall is: Higher taxes in the future; it's a matter of when. The corporations should have to pay their fair share, and should be based on American soil. Estate tax repeal made permanent? I wouldn't bet on it now.

Interesting that not many are responding to this thread. Economics? If the Democrats were throwing away money it would be like, OH, MAN _ RECKLESS SPENDING

FISCAL IRRESPONSIBILITY WHERE IS THE OUTRAGE????

Hello? Hello? Oh well. Just charge my Starbucks to Visa.

Made in China? That's OK. We love China now.

BirdieBoo said:

I guess I better start buying some gold bricks to put under my mattress!

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Nah, just buy Halliburton stock!

Marthatex said:

Interesting that not many are responding to this thread.

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It is difficult for me to get my mind around such HUGE numbers. We had done so well through the 90s bringing down the deficit -- and for what? For some greedy warmonger types to use the American citizens to bankroll their climb to power and wealth. It makes me sick :sick:

BirdieBoo said:

I guess I better start buying some gold bricks to put under my mattress!

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Safe Harbor in gold is very popular right now.

Ford has just announced that it will devote money and time to develop a whole new fleet of hybrid cars. Leading the way for American companies. Now THAT's a company I will invest in; it's low right now and will be going up and making a product that will do us good.

Halliburton stinks.