US to run 10 Trillion in Budget Deficit over the next 10 years

by RSingh 20. March 2009 10:16
The Associate Press today announced that the United States will run a budget deficits averaging almost $1-trillion a year over the next decade, according to the latest congressional estimates, significantly worse than predicted by the White House just last month.The Congressional Budget Office figures, obtained by The Associated Press Friday, predict Obama's budget will produce $9.3-trillion worth of red ink over 2010-2019. That's $2.3-trillion worse than the White House predicted in its budget.

As the debt grows more and more of the money being brought in to the government coffers in the form of taxes must go to pay the debt. The US will have no choice but to raise taxes which will also have a negative effect on their economy as accumulating debt is the fastest way to cripple anyone. The continued interest cost will then be a burden on future governments and money that could go into social program will have to be earmarked to pay debt.

We have to be thankful that here in Canada we are in a much better financial position and even though we are going to have a deficit over the next few years, we will not be nearly as bad off as our American friends.

 

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About the author

Roy Singh is a Real Estate and a Mortgage Broker with over 17 years experience. He was instrumental in building the largest Mortgage Brokerage in Canada and has developed many programs to allow First Time Home Buyers to enter into the Real Estate Business.

Roy currently is the Broker of Record for both CENTURY 21 Home Realty Inc. and CENTUM Discount Mortgage Canada Inc.

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