“Since when can you get out of huge national debt by creating trillions of dollars of new debt?” Alaska governor, Sarah Palin, asked an audience in Anchorage, as she was introducing Michael Reagan, the son of former President Ronald Reagan. “It all really is so backwards and skewed as to sound like absolute nonsense when some of this economic policy is explained,” she adds. Just last Wednesday, June 3rd 2009, the Congressional Budget Office estimated that an additional $9.3 trillion would be added to America’s national debt in the next decade due to President Obama’s deficits. Although many were dismayed by this number, there are a few who do not seem to fully grasp the devastating implications.
Despite warnings including from Federal Reserve Chairman Ben Bernanke, Obama and liberals in Congress continue to plan to add trillions of dollars more to the national debt. Bernanke issued his warning to the House Budget Committee last Wednesday, June 3rd, 2009. It is predicted that the ratio of debt to GDP will increase to a much worse point in the economy. The higher the debt in relation to the GDP, the worse off the economy will be. As of Wednesday, June 3, 2009, the national debt is up to US$11.4 trillion already. Last year the debt was 40% of the GDP.
However, according to an analysis by the Congressional Budget Office, the national debt will hit 70% of the GDP by 2011. By 2019, it will hit 82% of GDP. According to the CIA World Factbook, America ranks at number 22 of in the list of Country Comparisons on Public Debt. With the 2007 national debt which was 60% of the GDP, America ranks higher in debt than Thailand (42% of GDP), Costa Rica (38% of GDP), Ethiopia (34.40% of GDP), Indonesia (30.10% of GDP) and Nigeria (12.20% of GDP).
Below is a map of national debt by countries as of April 2006.
Popularity: 2% [?]
Add A Comment