Will the federal government shut down this weekend?

 
 

 

It’s time for those in power to bite the bullet. We cannot continue to live on credit cards to escape making tough decisions relating to approving our annual federal budget.
 
Today the GOP shared their budget proposal that is a wake up call to the president. Rep. Paul Ryan’s proposed budget for 2012 is $3.5 trillion dollars.
 

 

Table S-1 (Budget Totals) on page 171 of the BUDGET FOR FISCAL YEAR 2012 includes some huge numbers that jump off the page.
i.e. Under the year 2012 it reports receipts of $2.627 trillion dollars against outlays of $3.729 trillion resulting  in a deficit of $1.101 trillion dollars.
 
Going to Table S-3 on page 174, Adjusted Baseline by Category, it lists Social Security, Medicare, Medicaid and TARP. Below that sub total it includes net interest totaling $240 billion dollars.
 As I follow across the net interest line, that category increases from $240 billion in 2012 to $863 billion in 2020. 
 
As the budget is a living document I cannot assure readers that this document source contains the latest White House figures.
 
Through Jan of 2011 we have almost $11 trillion dollars of debt. “President Obama’s budget projects annual net interest payments on the debt will rise to $560 billion in 2016 from $196 billion in 2010. As bad as this $364 billion increase in interest expenditures is, the actual results are likely to be much worse, or to quote Lehrman, “almost unthinkable.” Source. Hamsayeh.net
 
US Treasuries outstanding to foreign investors led by mainland China with $1.1547 trillion followed by Japan with $885.9 trillion and the U.K. with $278.4 billion.
 
What I can say with full confidence is that we cannot continue to borrow billions of dollars from China and Japan to avoid making the tough decisions today.
 
Juice readers.
 
Who will blink first?
  
Will you be impacted if the federal government shuts down next week?  And if so, how?
  
What cuts would you be willing to live with?

 


About Larry Gilbert