Most corporations do the same thing when their bonds mature. If you're going to claim that this is bad practice, then most of the banking industry should be shot.

I'm not singling this out to be nit picky, I just don't think there's much to which I ought respond in the rest of the post as it's either obvious facts, or faulty conclusions.

Corporations borrow money generally for capital expenditures that are used over time in the production of the goods or services provided. I have used debt to build schools and there was a repayment schedule to repay that debt over a 20 year period. Your Mortgage is repaid over a fixed period of time. That is NOT how the Fed is using debt. They are financing about 20% of the ongoing operations of the government by borrowing. In general, debt is expected to be repaid at some point. Since 1981, we have continued to add not repay the debt with the exception of 2000 which is the ONLY year we had a small surplus not counting the Surplus from Social Security and Medicare. In addition to the cumulative debt increasing so is the interest we must pay to service that debt each year.

The way the Fiscal affairs of the U.S. are being run is DEAD WRONG and as I stated in my Blog, The interest will take the money from the annual budget that will be needed for defense, homeland security, Social Security, Medicare etc.

col you are a lying political hack. The man will be leaving office in two years and you are still working hard to un-elect him. If you are truly interested in this country you would be rooting for the next leader of the nation instead of crying about losing twice in a row.

The Christian Science Monitor reports today that the tax cuts of Mr. Bush If trends continue the treasury would show a surplus within a year. I guess col Gene and the liberals were wrong.

Paladin77

First you do not know what you are talking about. The analysis I pointed to was from the Comptroller General (Head of the GAO if you do not know who that is). His data clearly shows that the added revenue produced by the tax cuts does NOT equal the LOST revenue from the tax cuts.

The consequences of Bush and his policies will NOT END on January 20, 2009. For example, the added debt will not go away when Bush leaves office but will remain for future Presidents and Congresses to fix. It is more likely then not the next President will be handed a continuing war in Iraq. Every time you submit a post you demonstrate your ignorance. We need to remove Bush and Cheney from office NOW so the solutions to the problems they and the GOP in Congress created over the past 6 years can be corrected!

Here is a sample of the discourse:

Comptroller General David Walker Dislikes GWB
Just received in my inbox, a press advisory from the GAO:



The U.S. Government Accountability Office today is releasing a report from a forum of experts that sought to address ways to improve public understanding of the nation's growing fiscal imbalance. The report is available on the GAO website at www.gao.gov/cgi-bin/getrpt?GAO-05-282SP.

The forum, convened by Comptroller General David M. Walker on December 2, 2004, included 63 representatives of think tanks, government agencies, key private sector players, the media, and public opinion experts. Under the ground rules of the forum, individual speakers are not identified in the report unless they made a formal presentation before the group, but the report reflects the discussion during the day-long gathering.

Commenting on the report, Walker states: "Simply put, our nation's fiscal policy is on an unsustainable course. As long-term budget simulations by GAO, the Congressional Budget Office (CBO), and others show, over the long term we face a large and growing structural deficit due primarily to known demographic trends, rising health care costs, and relatively low levels of federal revenues as a percent of GDP.

Continuing on our present path will gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately our national security. It will also increasingly constrain our ability to address emerging and unexpected budgetary needs.

"Regardless of the assumptions used, all reasonable simulations indicate that the problem is too big to be solved by economic growth alone or by making modest changes to existing spending and tax policies. Nothing less than a fundamental reexamination of all major federal spending and tax policies and priorities is needed. This reexamination should also involve a national discussion about what Americans want from their government and how much they are willing to pay for those things. This discussion will not be easy, but it must take place because time is
working against us.

"As with any major public policy challenge, effective and sustained leadership will be critical. But leadership cannot succeed without public understanding and support."

Walker also will address the impact of the government's fiscal imbalance on Wednesday, February 2, at a conference for state and local government officials at the National Press Club. Walker is the keynote speaker at lunch; the conference is sponsored by Governing magazine and the NCSL Foundation.

For more information, contact Paul Anderson, GAO managing director of public affairs, at 202-512-4800.There is a crisis, and it's George W. Bush's misplaced priorities, fiscal mismanagement, expensive wars, and tax cuts for the rich. Bush will talk tomorrow night about how he's on track to halve the deficit - but it's lies, smoke and mirrors.

I guess you do not like the comments from GAO about the Bush policies!

I wouldn't talk col.  You fail to respond to most posts that directly refute your nonsense.

I don't have a problem with what he said. He stated his opinion based on what those experts told him. on the other hand did he list the other experts that disagreed with his point of view?

Paladin77

First his opinion is that of the foremost expert on the fiscal operations of this country. He also heads the agency that evaluates government operations and it is non political. Please read

There is a crisis, and it's George W. Bush's misplaced priorities, fiscal mismanagement, expensive wars, and tax cuts for the rich. Bush will talk tomorrow night about how he's on track to halve the deficit - but it's lies, smoke and mirrors

For someone like the Comptroller General to say this about the president is significant and he has the data to prove what he says. SHOW me any comparable evidence that refutes what he said or the evidence I have provided such as the growth in the debt and interest that we will pay because of the irresponsible way GWB has conducted the fiscal policy of this country?

Read my post on how the deficit is shrinking. You see not everyone involved in the process agrees with your guy.

Gene uses only evidence he likes. Ignores anything that doesn't jive with his agenda & rejects any conflicting opinions out of hand. Guilty of doing exactly what he alleges Bush did on the pre-war intelligence - only telling half the story.

Paaladin77

The ANNUAL Budget Deficit is lower. That is the amount we will ADD to the TOTAL National Debt that we have amassed. The TIOTAL continues to increase at a slower rate. The issue is that when Bush took over the TOTAL debt was $5.7 Trillion and is now just short of $9 Trillion and CONTINUES to increase. Bush NEVER balances the budget just says he will lower the amount of debt we add each year. The issue is simple and even you should be able to grasp it. If we agree to spend $2.9 Trillion next year then we must TAX $2.9 Trillion.

Daiwa

I give you evidence from the most knowledgeable and authoritative sources that clearly shows that the policies we are following are not solving the countries’ problems and are taking us into a very difficult future. We are financing about 20% of every dollar we spend to operate the federal Government with debt. If you as an individual did that you would be bankrupt in a short time. Since 1981, without offsetting the Surplus from Social Security and Medicare ($ 200 Billion per year) the ONLY year we had a balanced budget was 2000. What I am saying and what the Comptroller General is saying is that our fiscal policy is wrong and dangerous. At some point our children will be saddled with all the debt we are creating by refusing to pay for what we are spending. NOTHING anyone has posted refutes that fact!!!!!

Daiwa

The other issue that you have all ignored is that 40 % of the Interest the Federal Government pays on the publicly held debt goes to foreign investors. China is the biggest of those investors. That % has been increasing. All that interest paid to foreign investors leaves the economy of the U.S. In addition, the interest we pay to China is being used by China to build a military that will be a future problem for America.

The problem with that is when it was tried by President Carter the nation went into a tail spin. In four years of his mismanagement we became a debtor nation for the first time since the Civil war. What saved us was Ronald Reagan with his tax cuts that he got the Democrat controlled congress to allow. The lower rates allowed people to invest more money into their business and invest in other businesses, this caused a growth spirt that brought the nation back on its feet. Later we raised taxes twice and the economy began to sink again. History proves each time we have lowered taxes the treasury gets more money and when we raise taxes teh treasury takes in less money. FDR did it, JFK did it, Ronald Reagan did it, and GWB did it. Each time the nation prospered. LBJ raised taxes, so did Jimmy Carter.

Show me where in our history raising taxes helped the nation.