NATIONAL DEBT/U.S.TRADE DEFICIT

• US trade deficit which is on target to eclipse $700 billion in 2007, following the 2006 annual trade deficit of $758.5 billion
• The term “household deficit” refers to how much more American households spend each year than they earn. In 2004 Americans paid out $1.04 for every $1.00 of income, falling in total some $400 billion in the red. Between the presidential elections of 2000 and 2004, household debt grew by 39 percent. (American Theocracy, Kevin Phillips, 2006)
• During the first Bush administration close to five million people declared bankruptcy. (American Theocracy, Kevin Phillips, 2006)
• From 2001 to 2003 the ratio widened: $4.2 trillion more in debt turned out to add only $1.3 trillion in new GDP. (American Theocracy, Kevin Phillips, 2006)
• The current national debt as of November 29, 2007 is over $9.14 trillion (zFacts.com, November 29, 2007)
• In September, 2007 the Senate Finance Committee approved an $850 billion increase in US borrowing authority to $9.815 trillion in order to avoid a default as the US government nears its credit limit of $8.965 trillion. (David Walker, US Comptroller)
• Excluding social security and postal service surpluses, the 2006 government spending deficit was $434 billion and social security surpluses will begin a permanent decline in 2009, reaching zero in 2017. (David Walker, US Comptroller)
• The national debt is expanding by about $1.4 billion a day or nearly $1 million a minute. That means almost $30,000 in debt for each man, woman, child and infant in the United States. Interest payments keep compounding and could in time squeeze out most other government spending—leading to sharply higher taxes or a cut in basic services like Social Security…or both. (National Debt Grows $1 Million a Minute, The Associated Press, December 3, 2007)
• While the federal government budget spends the most on social security and healthcare with defense coming in next, paying the interest on the national debt is paying interest on the national debt which totaled $430 billion last year. (National Debt Grows $1 Million a Minute, The Associated Press, December 3, 2007)
• $5.1 trillion of the debt is owed to ordinary investors who buy Treasury bills, notes and U.S. savings bonds, banks, pension funds, mutual funds companies and state, local and increasingly foreign governments. In fact, foreign governments and investors hold around $2.23 trillion of 44% of all publicly held U.S. debt. While Japan is first with $586 billion and Britain second with $244 billion, China is second with $400 billion and Saudi Arabia and all other oil-exporting countries account for $123 billion. (National Debt Grows $1 Million a Minute, The Associated Press, December 3, 2007)
• If the shorter term Treasury bills roll over to higher rates, interest payments on the national debt could soar. (National Debt Grows $1 Million a Minute, The Associated Press, December 3, 2007)
• The dollar is down about 35% since the end of 2001 against other major currencies. (National Debt Grows $1 Million a Minute, The Associated Press, December 3, 2007)