President of the Federal Reserve Bank of Kansas City, speaks out about growing debt

The only Fed member to speak up and say the US must fix its growing debt problems or risk a new financial crisis was Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.

Mr Hoenig said that rising debt was infringing on the central bank’s ability to fulfil its goals of maintaining price stability and long-term economic growth. “Stunning” deficit projections were putting political pressure on the Fed to keep interest rates low, infringing on its independence at the risk of inflation, he said.

The US budget deficit is projected to be $8,000bn in the next decade. Barack Obama, US president, recently lifted the government’s borrowing authority to $14,300bn.

Thats alot to swallow

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Published in: on February 17, 2010 at 11:11 am  Leave a Comment  
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So how much exactly do we owe? $12,245,872,000,000

And here I was worried about my mortgage and cc debt

WASHINGTON (AP) —

Figures on government spending and debt (last six digits are eliminated). The
government’s fiscal year runs Oct. 1 through Sept. 30.
Total public debt subject to limit Jan. 22 12,245,872
Statutory debt limit 12,394,000
Total public debt outstanding Jan. 22 12,302,465
Operating balance Jan. 22 142,454
Interest fiscal year 2009 383,365
Interest fiscal year 2008 451,154
Deficit fiscal year 2009 1,417,121
Deficit fiscal year 2008 454,798
Receipts fiscal year 2009 2,104,613
Receipts fiscal year 2008 2,523,642
Outlays fiscal year 2009 3,521,734
Outlays fiscal year 2008 2,978,440
Gold assets in September 11,041

Published in: on January 26, 2010 at 8:37 am  Leave a Comment  
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“Excuse me sir? May I have another 1.9Trillon Dollars?”

Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $1.9 trillion to pay its bills, a record increase that would permit the national debt to reach $14.3 trillion.

Say waaaatttt?

Is this something you really want to do after what happened in Massachusetts on Tuesday night?

let me put this into perspective for you, less than a decade ago, $1.9 trillion would have been enough to finance the operations and programs of the federal government for an entire year. Now, it’s only enough to make sure Democrats can avoid another vote before Election Day.

Arguing over the debt limit provides a forum for Republicans to blame Democrats for rising deficits and spiraling debt, even though responsibility for the government’s financial straits can be shared by both political parties.

DID YOU HEAR THAT CONGRESS – BOTH PARTIES ARE TO BLAME.

The record increase in the so-called debt limit is required because the budget deficit has spiraled out of control in the wake of a recession that cut tax revenues, the Wall Street bailout, and increased spending by the Democratic-controlled Congress. Last year’s deficit hit a phenomenal $1.4 trillion, and the current year’s deficit promises to be as high or higher.

Congress has never failed to increase the borrowing limit. So I guess we get to wait and see if they do.

Lucky Us!

Published in: on January 21, 2010 at 8:42 am  Comments (2)  
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