Read More »"/> Read More »"/> U.S. Treasury Secretary: The Size of the National Debt Is the Problem | MyGovCost | Government Cost Calculator

U.S. Treasury Secretary: The Size of the National Debt Is the Problem


Friday January 18th, 2013   •   Posted by Craig Eyermann at 5:00am PST   •  

The outgoing Secretary of the U.S. Treasury, Timothy Geithner has issued the Citizen’s Guide to the 2012 Financial Report of the United States Government. There are two charts in the report that fully summarize the nation’s fiscal situation, which Geithner indicates should be considered together. Here they are:

Chart-5-citizens-guide-us-financial-report-2012

In this first chart, we see that the Obama administration projects that the nation’s revenues from tax collections will be rock steady into the future, while spending because of interest payments on the nation’s excessive level of national debt skyrocket. The second chart Secretary Geithner want U.S. citizens to consider with this first chart shows the national debt is projected to grow as a percentage of the size of its economy:

Chart-6-citizens-guide-us-financial-report-2012

Taking the two charts together, what Secretary Geithner would seem to be projecting is a national debt death spiral – where interest rates rising above today’s rock-bottom levels make it increasingly necessary to borrow even more money to make interest payments on the national debt.

Of course, even the optimistic scenario depicted in the charts above only hold true if the Obama administration’s economic projections are any good. Their track record to date is one of being exceedingly optimistic….




Facebook Twitter Youtube

Search

amazon.com
Support the Independent Institute when you shop on Amazon with the AmazonSmile program. Every time you make a purchase, 0.5% will be donated to Independent on your behalf, at no extra cost to you. Just visit smile.amazon.com, log in using your usual Amazon account details, and select the Independent Institute as your charity.

Archives

January 2013
S M T W T F S
 12345
6789101112
13141516171819
20212223242526
2728293031