Reply #1: The problem isn't the deficit the problem is the debt and the long term projection. [View All]

[Statistical]

$1.6T deficit not good but understandable.

Current debt $11T.
Projection through 2019 = +$9T MORE DEBT!

That includes very optimistic projections like ending war in Iraq and economy recovering Q3-2009.

Total National Debt by 2019 will be >$20T. ($11T today +9T projected over next decade).
So whats $20T?

It is more than 130% of GDP today and likely more than 100% GDP in 2019.
Another way to look at it is interest. $20T @ 5% = $1T in interest.
Total US revenue is $2.6T right now. Interest in 2019 would be $1T (or about 40% of every dollar coming in).

Starting to see the problem? The question isn't raising taxes or cutting spending..... it is doing both and not by token amounts. Something like a 5% boost in taxes, a 1% cut in spending across the board and targeted cuts up to 10% in some areas won't resolve the issue but will at slow the bleeding.


The last stage of every empire collapse is money flows out of the empire faster than it flows in. Happened in British Empire, happened in Rome, happened in Byazntine Empire and it is happening circa 2000-2019 in the American Empire.