| Bush administration (and Republican led Congress) incompetence is quantified as US deficit hits record $413 billion. |
| The deficit in the broadest measure of international trade rose to an all-time high of $195.1 billion from January through March of this year as the country sank deeper into debt to Japan, China and other nations. The current account deficit for all of 2004 hit a record $668.1 billion, up a sharp 28.6% from the previous record of $519.7 billion in 2003. The U.S. deficit must be financed by foreigners agreeing to hold more in dollar-denominated investments. Economists worry that at some point foreigners may lose their enthusiasm for dollar-denominated investments and begin dumping their holdings in U.S. stocks and bonds. Such a development could cause interest rates in the United States to soar and push the value of the dollar and stocks down sharply. If the reaction was severe enough, it could push the country into a recession. Source: "Current account trade deficit rises to record $195.1B" - USA Today - 6/17/05 Even if the United States saved billions of dollars by withdrawing all troops from Iraq and Afghanistan, President Bush would still be unlikely to fulfill his promise of reducing the federal budget deficit by half within five years, the nonpartisan Congressional Budget Office said Tuesday. If Mr. Bush persuades Congress to make his tax cuts permanent, the federal deficit would increase to about $500 billion in 2009. Over the next 10 years, the congressional agency said, the federal debt could swell by $4.8 trillion and climb rapidly after that as the nation's baby-boomers start to draw Social Security and Medicare benefits. Budget deficits have soared under Mr. Bush, who took office when the budget was running a surplus of more than $150 billion. Source: "Big cut in deficit called unlikely" - Dallas Marning News - 9/8/04 (New York Times) |
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