Bush's deficit so-called "good news" isn't really

[Guest Harry Hope]

From an Orlando Sentinel editorial, 7/13/07:

http://www.orlandosentinel.com/news/opinion/orl-ed13107jul13,0,1452029.story

 

Not so rosy

 

Our position: The new deficit projections mask the long-term problems.

 

 

In a week when good news seemed scarce in Washington, D.C., the latest

estimate from the White House showing a decline in the federal budget

deficit was welcome.

 

But this good checkup is no excuse for lawmakers to keep ignoring

long-term threats to the nation's fiscal health.

 

The White House's Office of Management and Budget projected Wednesday

that the red ink for the budget year ending Sept. 30 would reach $205

billion.

 

That's $39 billion less than the forecast in February, and $43 billion

less than last year's final figure.

 

If the latest projection pans out, the deficit will have fallen by

more than half since peaking in 2004.

 

So much for the good news.

 

The bad news begins with the fact that the national debt will still

rise this year by nearly $400 billion, because the government is also

borrowing close to $200 billion from trust funds designated for other

purposes to cover its expenses.

 

The national debt is approaching $9 trillion, about 50 percent higher

than when President George W. Bush took office.

 

As the debt goes up, so do interest payments, squeezing out

investments that could make the country stronger and more prosperous.

 

Mr. Bush and congressional Republicans argued that the latest drop in

the deficit reflects the success of the president's 2001 and 2003 tax

cuts in stimulating the economy and generating more tax revenue.

 

But the head of the nonpartisan Congressional Budget Office told The

Washington Post that the additional tax dollars have come from an

increase in corporate profits that has little to do with the tax cuts.

Regardless, the White House is projecting the revenue spike will level

off next year, and the deficit will rise to $258 billion.

 

___________________________________________________

 

http://www.brillig.com/debt_clock/

 

U.S. NATIONAL DEBT CLOCK

 

The Outstanding Public Debt as of 16 Jul 2007 at 05:38:31 PM GMT is:

 

$ 8 , 8 8 3 , 0 0 4 , 8 5 0 , 0 7 8 . 9 4

 

The estimated population of the United States is 302,444,990

so each citizen's share of this debt is $29,370.65.

 

The National Debt has continued to increase an average of

$1.30 billion per day since September 29, 2006!

 

 

Harry