The Congretional Buget Office came out with a new report that seems a bit staggering. In a March 2009 publication they have a revealing chart (see below) depicting the federal deficit/surplus chart.
By the way, the CBO’s charter is to simply provide timely economic and budgetary analysis to congress. Congress uses this data to help them make more informed budgetary decisions. It is intended to be a non-partisan and objective analysis.
It’s funny they even use the word “surplus” in the title of the chart since there is only a brief time where we actually had a surplus.
The report is saying that in 2019 we will be sitting on a deficit of around $10 trillion dollars. It’s a hard number to grasp (see units exercise at bottom). To add some perspective, the deficit in 1980 was $930 million.
Here are some projections around this chart that might help put it in perspective. All of this will most likely happen during Obama’s administration (assuming Obama serves two terms, or 8 years) .
- The deficit will at least double.
- We will borrow more money than all of the other presidents – combined.
- We will be spending more money on interest than our entire national debt of 1980.
- The dollar could cease to be the World Reserve or Anchor Currency.
One million seconds equates to about 11 DAYS
One billion seconds equates to about 31 YEARS
One trillion seconds equates to about 317 CENTUREIS