The debt ceiling of $12.1 trillion will be reached by early December. Congress will have to raise this limit, or America will be in default of its obligations. I predict an increase to at least $15 trillion, and that should be reached at the end of Obama’s first term.
Why do I think this will happen? Obama’s budget will be around $4 trillion dollars for fiscal year 2010, with at least a trillion dollars being deficit spending. If the economy doesn’t gain speed, this amount will increase by at least half, thereby insuring a deficit of $1.5 trillion dollars.
The real wild card is health care reform, or now known as “deficit spending,” as this will happen, regardless of what the Congress creatures tell us. There is no incentive in any of the plans to hold down costs, as everyone will use the new government plan as much as they can. This will drive up costs, way beyond the projected cost of 1.2 trillion dollars, thereby increasing the deficit, and eventually the debt.
Three years of $1 trillion dollar deficits will bring the accumulated debt to $15.1 trillion by December 2012. Congress will then have to raise the debt ceiling again and probably should shoot for $20 trillion, as the deficits are projected to be higher from 2015 outward.
I have written Rep. Roy Blunt, and Sens. Claire McCaskill and Christopher “Kit” Bond, asking them to vote against the health care reform package, as the American taxpayer cannot afford the check. I do not expect much from Sen. McCaskill, but maybe the other two will realize we are broke and will vote against this hijacking of the health care industry.
Roy Winans
Joplin
