Cyneca
04-05-2009, 05:46 AM
I just got permission from the author to cross post this so here it is, and you arent gunna believe it!
$17.1 Trillion in Debt? Just how big is that?
Posted by Kelly on April 4, 2009 at 3:57pm
http://www.the912project.us/forum
I asked my husband Scott, how much Obama's budget is really costing us. He is a CFO he deals in large financial numbers on a daily basis. and here is his repsonse...
Ok, this is really related to legislation, but I had to post this under current issues because I'm just blown away. I'm a CFO and deal with big numbers every day, but I almost vomited when I looked at the version of Obama's budget that just passed in the House this week. Has anyone actually looked at the budget?
It calls for spending that exceeds revenues (taxes) every year through 2014, which drives up deficits, which requires more borrowing every year and increases the national debt to $17.1 TRILLION by 2014. The interest payments alone on the debt are $560 billion in 2014, more than double today's interest expense. That will make annual interest expense the third largest category of spending in the 2014 budget, exceeded ONLY by $595 billion on National Defense and $616 billion on Medicare. Interest expense in 2014 will exceed spending on Healthcare, Transportation, Energy, Education, Justice, Agriculture, Commerce & Housing, and all other categories of government.
Check out the details (but keep a bucket handy):
SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.
The following budgetary levels are appropriate for each of fiscal years 2009 through 2014:
(1) FEDERAL REVENUES- For purposes of the enforcement of this resolution:
(A) The recommended levels of Federal revenues are as follows:
Fiscal year 2009: $1,532,571,000,000.
Fiscal year 2010: $1,659,525,000,000.
Fiscal year 2011: $1,933,072,000,000.
Fiscal year 2012: $2,190,099,000,000.
Fiscal year 2013: $2,361,429,000,000.
Fiscal year 2014: $2,507,846,000,000.
(Scott Note: "REVENUES" increase from $1.5 trillion in 2009 to $2.5 trillion in 2014. What are "REVENUES"? These are TAXES for the most part!! Why do "REVENUES" (taxes) need to increase 66%? See "BUDGET OUTLAYS" (spending) below.)
(3) BUDGET OUTLAYS- For purposes of the enforcement of this resolution, the appropriate levels of total budget outlays are as follows:
Fiscal year 2009: $3,357,255,000,000.
Fiscal year 2010: $2,996,234,000,000.
Fiscal year 2011: $2,981,872,000,000.
Fiscal year 2012: $2,939,612,000,000.
Fiscal year 2013: $3,093,577,000,000.
Fiscal year 2014: $3,261,525,000,000.
(Scott Note: "BUDGET OUTLAYS" means spending. What happens if we SPEND $3.3 trillion in 2009 when REVENUES are only $1.5 trillion? We create DEFICITS!! Read on...)
(4) DEFICITS (ON-BUDGET)- For purposes of the enforcement of this resolution, the amounts of the deficits (on-budget) are as follows:
Fiscal year 2009: $1,824,684,000,000.
Fiscal year 2010: $1,336,709,000,000.
Fiscal year 2011: $1,048,800,000,000.
Fiscal year 2012: $749,513,000,000.
Fiscal year 2013: $732,148,000,000.
Fiscal year 2014: $753,679,000,000.
(Scott Note: So for 2009 alone, we spend $3.3 trillion with revenues of only $1.5 trillion and create a deficit of $1.8 trillion!! And then we create more deficit of $1.3 trillion in 2010, and so on. How do we deal with "DEFICITS"? We borrow money so we can keep spending even though we don't have the incoming funds. Check out the national debt below.)
(5) DEBT SUBJECT TO LIMIT- Pursuant to section 301(a)(5) of the Congressional Budget Act of 1974, the appropriate levels of the public debt are as follows:
Fiscal year 2009: $12,017,000,000,000.
Fiscal year 2010: $13,223,000,000,000.
Fiscal year 2011: $14,350,000,000,000.
Fiscal year 2012: $15,276,000,000,000.
Fiscal year 2013: $16,162,000,000,000.
Fiscal year 2014: $17,100,000,000,000.
(Scott Note: So every year we have "DEFICITS", we borrow more and increase our national "DEBT" to $17.1 trillion in 2014!! If there are 300 million people in the U.S., that's $57,000 of "DEBT" for every person. "My gosh", you might say, "good thing it's government debt so we don't have to pay any interest." Read on...)
(18) Net Interest (900):
Fiscal year 2009:
(A) New budget authority, $288,955,000,000.
(B) Outlays, $288,955,000,000.
Fiscal year 2010:
(A) New budget authority, $284,085,000,000.
(B) Outlays, $284,085,000,000.
Fiscal year 2011:
(A) New budget authority, $323,266,000,000.
(B) Outlays, $323,266,000,000.
Fiscal year 2012:
(A) New budget authority, $387,483,000,000.
(B) Outlays, $387,483,000,000.
Fiscal year 2013:
(A) New budget authority, $470,452,000,000.
(B) Outlays, $470,452,000,000.
Fiscal year 2014:
(A) New budget authority, $560,137,000,000.
(B) Outlays, $560,137,000,000.
(Scott Note: So our ANNUAL INTEREST payments increase from only (hehe) $289 billion in 2009 to $560 billion in 2014!! Remember that REVENUES were projected at $2.5 trillion in 2014? That means 22% of all REVENUES (taxes) in 2014 will go to cover INTEREST payments on the DEBT.)
Keep in mind the REVENUES in this budget are based on tax increases that result partly because the economy improves (note: ummm, this is an assumption). The theory is the economy picks up, demand increases, companies sell more and rehire workers, and both employers and employees have more income and, therefore, pay more taxes. The Congressional Budget Office (CBO) doesn't think the economy will improve as quickly as Obama assumes, so the CBO projects lower revenue, higher deficits, higher debt, and higher interest expense!!
We have to stop this!! If this kind of deficit spending keeps up, pretty soon all our taxes will be required just to pay interest on the national debt, and there will be no money left to support our national defense, justice, and the other things the U.S. Constitution requires (as opposed to all this spending NOT intended by the Constitution).
$17.1 Trillion in Debt? Just how big is that?
Posted by Kelly on April 4, 2009 at 3:57pm
http://www.the912project.us/forum
I asked my husband Scott, how much Obama's budget is really costing us. He is a CFO he deals in large financial numbers on a daily basis. and here is his repsonse...
Ok, this is really related to legislation, but I had to post this under current issues because I'm just blown away. I'm a CFO and deal with big numbers every day, but I almost vomited when I looked at the version of Obama's budget that just passed in the House this week. Has anyone actually looked at the budget?
It calls for spending that exceeds revenues (taxes) every year through 2014, which drives up deficits, which requires more borrowing every year and increases the national debt to $17.1 TRILLION by 2014. The interest payments alone on the debt are $560 billion in 2014, more than double today's interest expense. That will make annual interest expense the third largest category of spending in the 2014 budget, exceeded ONLY by $595 billion on National Defense and $616 billion on Medicare. Interest expense in 2014 will exceed spending on Healthcare, Transportation, Energy, Education, Justice, Agriculture, Commerce & Housing, and all other categories of government.
Check out the details (but keep a bucket handy):
SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.
The following budgetary levels are appropriate for each of fiscal years 2009 through 2014:
(1) FEDERAL REVENUES- For purposes of the enforcement of this resolution:
(A) The recommended levels of Federal revenues are as follows:
Fiscal year 2009: $1,532,571,000,000.
Fiscal year 2010: $1,659,525,000,000.
Fiscal year 2011: $1,933,072,000,000.
Fiscal year 2012: $2,190,099,000,000.
Fiscal year 2013: $2,361,429,000,000.
Fiscal year 2014: $2,507,846,000,000.
(Scott Note: "REVENUES" increase from $1.5 trillion in 2009 to $2.5 trillion in 2014. What are "REVENUES"? These are TAXES for the most part!! Why do "REVENUES" (taxes) need to increase 66%? See "BUDGET OUTLAYS" (spending) below.)
(3) BUDGET OUTLAYS- For purposes of the enforcement of this resolution, the appropriate levels of total budget outlays are as follows:
Fiscal year 2009: $3,357,255,000,000.
Fiscal year 2010: $2,996,234,000,000.
Fiscal year 2011: $2,981,872,000,000.
Fiscal year 2012: $2,939,612,000,000.
Fiscal year 2013: $3,093,577,000,000.
Fiscal year 2014: $3,261,525,000,000.
(Scott Note: "BUDGET OUTLAYS" means spending. What happens if we SPEND $3.3 trillion in 2009 when REVENUES are only $1.5 trillion? We create DEFICITS!! Read on...)
(4) DEFICITS (ON-BUDGET)- For purposes of the enforcement of this resolution, the amounts of the deficits (on-budget) are as follows:
Fiscal year 2009: $1,824,684,000,000.
Fiscal year 2010: $1,336,709,000,000.
Fiscal year 2011: $1,048,800,000,000.
Fiscal year 2012: $749,513,000,000.
Fiscal year 2013: $732,148,000,000.
Fiscal year 2014: $753,679,000,000.
(Scott Note: So for 2009 alone, we spend $3.3 trillion with revenues of only $1.5 trillion and create a deficit of $1.8 trillion!! And then we create more deficit of $1.3 trillion in 2010, and so on. How do we deal with "DEFICITS"? We borrow money so we can keep spending even though we don't have the incoming funds. Check out the national debt below.)
(5) DEBT SUBJECT TO LIMIT- Pursuant to section 301(a)(5) of the Congressional Budget Act of 1974, the appropriate levels of the public debt are as follows:
Fiscal year 2009: $12,017,000,000,000.
Fiscal year 2010: $13,223,000,000,000.
Fiscal year 2011: $14,350,000,000,000.
Fiscal year 2012: $15,276,000,000,000.
Fiscal year 2013: $16,162,000,000,000.
Fiscal year 2014: $17,100,000,000,000.
(Scott Note: So every year we have "DEFICITS", we borrow more and increase our national "DEBT" to $17.1 trillion in 2014!! If there are 300 million people in the U.S., that's $57,000 of "DEBT" for every person. "My gosh", you might say, "good thing it's government debt so we don't have to pay any interest." Read on...)
(18) Net Interest (900):
Fiscal year 2009:
(A) New budget authority, $288,955,000,000.
(B) Outlays, $288,955,000,000.
Fiscal year 2010:
(A) New budget authority, $284,085,000,000.
(B) Outlays, $284,085,000,000.
Fiscal year 2011:
(A) New budget authority, $323,266,000,000.
(B) Outlays, $323,266,000,000.
Fiscal year 2012:
(A) New budget authority, $387,483,000,000.
(B) Outlays, $387,483,000,000.
Fiscal year 2013:
(A) New budget authority, $470,452,000,000.
(B) Outlays, $470,452,000,000.
Fiscal year 2014:
(A) New budget authority, $560,137,000,000.
(B) Outlays, $560,137,000,000.
(Scott Note: So our ANNUAL INTEREST payments increase from only (hehe) $289 billion in 2009 to $560 billion in 2014!! Remember that REVENUES were projected at $2.5 trillion in 2014? That means 22% of all REVENUES (taxes) in 2014 will go to cover INTEREST payments on the DEBT.)
Keep in mind the REVENUES in this budget are based on tax increases that result partly because the economy improves (note: ummm, this is an assumption). The theory is the economy picks up, demand increases, companies sell more and rehire workers, and both employers and employees have more income and, therefore, pay more taxes. The Congressional Budget Office (CBO) doesn't think the economy will improve as quickly as Obama assumes, so the CBO projects lower revenue, higher deficits, higher debt, and higher interest expense!!
We have to stop this!! If this kind of deficit spending keeps up, pretty soon all our taxes will be required just to pay interest on the national debt, and there will be no money left to support our national defense, justice, and the other things the U.S. Constitution requires (as opposed to all this spending NOT intended by the Constitution).