"The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium."
"Moody's said Tuesday that the government needed to stabilize the ratio at 73 percent by 2015 "to ensure that the long-run fiscal trajectory remains compatible with a AAA rating.
http://news.yahoo.com/us-aaa-rating-still-under-threat-204040123.html
hmmm so what you are saying is that we need to cut our debt by roughly 25% by 2015 to ensure our trajectory stays compatible with a AAA rating. Likely..... not. of course we could keep our dept the same and just let our GDP grow, let see it would have to grow by a rate of about 7.5% over the next for years assuming our GDP ends in 2011 at $14.75 Trillion. Congress is cheering about reducing our spending by $2 trillion over the next ten years. Assuming a rate of growth of 2% of GDP we would have to cut our debt by about 4 Trillion in 4 years to meet their trajectory. Truth is the current plan still plans to raise the debt by $7.5 trillion over the next 10 years.
http://blogs.forbes.com/peterferrara/2011/08/04/a-budget-cutting-deal-that-boosts-federal-spending/
Amazing.... Amazing
Thursday, August 04, 2011
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