Treasury Secretary Warns About a Financial Disaster!

From that interview.

PAULSON: The progress on the deficit is a huge positive.

And when I look at the hand that I have been dealt, coming down here as treasury secretary, one of the strongest hands I have been dealt is a very healthy economy, and an economy that is growing, and where revenues are coming in way ahead of forecasts.

CAVUTO: But maybe you came in at a top.

PAULSON: Our deficit is now 1.9 percent of our GDP. That is well below the — the average we have had for the last 40 years, and that despite the — the cost of the war and two hurricanes.

So, the concern about the deficit is not the — the present budget deficit. It is looking ahead a few years at — at the big structural deficit we are going to have, if we are unable to — to move quickly to reform our entitlement programs.

I didn't read anything about him saying a financial disaster was looming. Once again you use false and misleading scare tactics to blame Bush. Pathetic.

IslandDog

So, the concern about the deficit is not the — the present budget deficit. It is looking ahead a few years at — at the big structural deficit we are going to have,

That is what I said in my Blog. It is the added burden from the Prescription Drug Plan and the added interest on the debt and the continued annual deficit that the Bush plan NEVER resolves.

The added burden of the $350 Billion EVERY year that is a DIRECT result of the Bush/GOP actions is the issue. We would have $350 Billion per year less in our obligations if we kept the National Debt at the levels they were when Bush took Office and had funded the Prescription Drug plan.

And what is the democrats plan to solve this? You once again exaggerated something into a scare tactic. Can you seriously exist without blaming Bush and writing countless articles on the same bs over and over?

IslandDog

The issues I pointed out are the result of the Bush/GOP policies not the Democrats. The passage of the Prescription Drug Plan without funding and the increase in the debt that added to the interest has NOTHING to do with the Democrats.

I didn't say the democrats caused it. I asked what the democratic plan is. Democrats would add more entitlements, especially to illegal aliens.

I pointed out that once again you exaggerate the issue and use scare tactics for your so-called articles.

Plan without funding and the increase in the debt that added to the interest has NOTHING to do with the Democrats.

Hmmm, increased debt. Funny, according to this article:

http://news.bbc.co.uk/2/hi/business/6041460.stm

-or-

WWW Link

IslandDog

My article is not a scare tactic unless that is what you think the Secretary of the Treasury was doing on Fox News. It is a dose of reality. The very same issue is behind the statements of the Comptroller General's statement last December that I quoted.


The Democrats support a BALANCED BUDGET something that was the Republican concept before Bush and the current GOP leadership.

They also support meeting the promises made to the baby Boomers with regard to Social Security and Medicare. That will require added funding as the number of people employed paying taxes drop compared with each retired. Today that is about 3.5 working to one retired. That is producing a SURPLUS for both Social Security and Medicare. As the number working drops below 3 toward two added funding for both programs will be required. That is a fact that Bush and the GOP have not come to grips with.

SilentPoet

Your article addresses the annual budget deficit being reduced. It does not address the fact that to date the National Debt has gone from $5.7Trillion to$ 8.5 Trillion and even with the SLOWING of the annual deficit the increase in the interest will take place. The interest has already gone from 230 Billion in 2000 to about 380 billion in 2006. That amount will continue to increase as the National debt increases.

Your article addresses the annual budget deficit being reduced. It does not address the fact that to date the National Debt has gone from $5.7Trillion to$ 8.5 Trillion and even with the SLOWING of the annual deficit the increase in the interest will take place. The interest has already gone from 230 Billion in 2000 to about 380 billion in 2006. That amount will continue to increase as the National debt increases.

The key word is REDUCED. That shows that progress is being made, does it not?

The Democrats support a BALANCED BUDGET something that was the Republican concept before Bush and the current GOP leadership.

And they also support giving rights to terrorists. I asked what is the democratic plan. Just like North Korea you guys HAVE NO PLAN for anything but BLAME BUSH.

This blog has NOTHING to do with terrorism and the Democrats are just as interested in protecting this country as the Republicans. The people that we are holding must to be tried and if found guilty be punished. They can not be held without a trial. That goes against the most basic principals of our country.

SilentPoet

What is being reduced is the RATE of the annual deficit. The National debt is increasing every day and so is the interest we are paying. Until we have BALANCED the Budget and begin repaying all the debt bush added we have NOT SOLVED THE PROBLEM!

What is being reduced is the RATE of the annual deficit. The National debt is increasing every day and so is the interest we are paying. Until we have BALANCED the Budget and begin repaying all the debt bush added we have NOT SOLVED THE PROBLEM!

Hmmm, yes. I realize that, and you know what....the lower the INCREASE rate...the CLOSER we get to being able reverse it. It is one of many options.

DER!

SilentPost


If Bush is successful in cutting the annual deficit in half he we will still be about $200 Billion per year deficit and we will be over $9 Trillion in debt overall. That is the problem. Bush has increased the national debt more than anyone and will leave office with the budget out of balance. Now he wants to make the tax cuts permanent which the Brookings Institute estimates would add yet another $2.4 Trillion dollars to the debt by 2014. The GOP and Bush have caused a serious fiscal problem that we will be paying for by MUCH higher interest payments that will take the money we will need to fund Social Security and Medicare for the Baby Boomers.

If Bush is successful in cutting the annual deficit in half he we will still be about $200 Billion per year deficit and we will be over $9 Trillion in debt overall. That is the problem. Bush has increased the national debt more than anyone and will leave office with the budget out of balance. Now he wants to make the tax cuts permanent which the Brookings Institute estimates would add yet another $2.4 Trillion dollars to the debt by 2014. The GOP and Bush have caused a serious fiscal problem that we will be paying for by MUCH higher interest payments that will take the money we will need to fund Social Security and Medicare for the Baby Boomers.

BUT, he's cut it. Correct? Are you unable to give him credit for getting it that far? No, I do not think you are.

Silenpoet


NO! He has added about $4 Trillion dollars to the overall debt which will drive the annual interest to $ 500 Billion per year. I will give him credit when he balances the budget and pays down the debt to the $5.7 Trillion that it was when he took office. Until the debt is REPAID we MUST pay the added interest EVERY YEAR and 40% of that interest is paid to foreign bond holders which means the money leaves our country! For a President with an MBA he is a disgrace!

NO! He has added about $4 Trillion dollars to the overall debt which will drive the annual interest to $ 500 Billion per year. I will give him credit when he balances the budget and pays down the debt to the $5.7 Trillion that it was when he took office. Until the debt is REPAID we MUST pay the added interest EVERY YEAR and 40% of that interest is paid to foreign bond holders which means the money leaves our country! For a President with an MBA he is a disgrace!

Sorry but I call "foul" here! It has been "your" opinion over and over again that "Slick Willie" left office with a "balanced budget" AND a surplus. How in god's name can you have a surplus with a 5.7 trillion dollar debt?

Drmiler

The balanced budget you are talking about is the annual budget deficit - the difference between the tax collections and the spending for one year. In 2000 we did have a balanced budget, however, for the 20 years BEFORE 2000 we had a deficit EVERY year and the total of those 20 years of annual deficits was $5.7 Trillion when Bush took office. Bush immediately returned to an annual deficit and added to the $5.7 Trillion dollars which stands at $ 8.5 Trillion today and heading for $10 Trillion by about 2010. The interest we paid on the debt in 2000 was $235 Billion. The interest today is about $380 Billion and will reach $500 billion when the total debt is $10 Trillion in about the year 2010.

If you go to the U.S. Treasury Web site, Dept of public debt you can see the annual debt each year as well as the cumulative debt. This cumulative debt from when Reagan took over up to Sept 30 2005. As of Sept 30 2006 it is about $8.5 Trillion:




Date Amount

09/30/2005 $7,932,709,661,723.50
09/30/2004 $7,379,052,696,330.32
09/30/2003 $6,783,231,062,743.62
09/30/2002 $6,228,235,965,597.16
09/30/2001 $5,807,463,412,200.06
09/30/2000 $5,674,178,209,886.86 Bus43 became president
09/30/1999 5,656,270,901,615.43
09/30/1998 5,526,193,008,897.62
09/30/1997 5,413,146,011,397.34
09/30/1996 5,224,810,939,135.73
09/29/1995 4,973,982,900,709.39
09/30/1994 4,692,749,910,013.32
09/30/1993 4,411,488,883,139.38
09/30/1992 4,064,620,655,521.66
09/30/1991 3,665,303,351,697.03 Clinton became president
09/28/1990 3,233,313,451,777.25
09/29/1989 2,857,430,960,187.32
09/30/1988 2,602,337,712,041.16 Bush 41 became president
09/30/1987 2,350,276,890,953.00
09/30/1986 2,125,302,616,658.42
12/31/1985 1,945,941,616,459.88
12/31/1984 1,662,966,000,000.00 *
12/31/1983 1,410,702,000,000.00 *
12/31/1982 1,197,073,000,000.00 *
12/31/1981 1,028,729,000,000.00 *
12/31/1980 930,210,000,000.00 Reagen became president

Drmiler;

I found the exact number from the dept of the Treasusy ( The U.S. Treasury is not a liberal organization):

09/29/2006 $8,506,973,899,215.23

U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 14 Oct 2006 at 06:15:50 PM GMT is:

$8,549,647,928,127.47
The estimated population of the United States is 299,694,972
so each citizen's share of this debt is $28,527.83.

The National Debt has continued to increase an average of
$1.63 billion per day since September 30, 2005!
Concerned? Then tell Congress and the White House!

Drmiler

I take it you finally understand about the national debt.