Brother, Can You Spare $9 Trillion?

(CBS)  This article was written by CBS News White House correspondent Mark Knoller.

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Few took notice, but for the first time in U.S. history last Friday, the national debt hit an all-time high of $9 trillion.

To be exact, the total liabilities of the U.S. Government hit $9,005,648,561,262.70, according to the Bureau of the Public Debt at the Treasury Department.

Numerically, that's in excess of the debt ceiling set by Congress, which stands at $8.965 trillion.

Some components of the national debt are excluded from the debt ceiling calculation.

But had it truly been reached, the Treasury Department would be barred from selling any more bonds, notes and other securities until Congress raises the limit.

Treasury Secretary Henry Paulson served notice on Congress in July that he expects the U.S. Government to bump into the debt ceiling in early October and that lawmakers need to raise the ceiling before then.

No official notice of the national debt milestone was taken by the White House. Understandably. It's an embarrassingly large figure for a president who claims to be fiscally-conservative to have to explain.

Mr. Bush often boasts about his commitment to fiscal restraint, and trumpets his efforts to bring down the annual federal deficit from its all-time high of $413 billion in 2004. The Administration forecasts a deficit this year of $205 billion. The forecast from the Congressional Budget Office is lower still at $158 billion.

But Mr. Bush almost never mentions the national debt. On the day he took office, the debt stood at $5.727 trillion. That means it has increased by 57 percent on his watch. So far.

And it's not just the size of the debt that's historic. So too is the amount taxpayers must pay annually in interest payments on $9 trillion in borrowed funds.

Last year, the interest on the debt exceeded $405 billion dollars. This year's interest payments will be even greater.

Because of the ebb and flow of revenues and liabilities, the size of the national debt changes daily. It fell slightly beneath the $9 trillion mark on Tuesday, but it won't stay there long.

[michellem99-2009]

toldyouso21,Dear look in the prices of the 60s and 70s. You will be surprised. 1963 I was 9. I had a small bag of chips 5 cents today that same bag about a dollar. 1974 Family size bag 79 cents. A family ate better then. Could afford to. TODAY is a different story. I don''t smoke, in 1972 a cart of cigerette was 5 dollars.We had gardens so foster parents grew most the food we ate and canned. That was New England. The cars cost more than the homes bought years ago. I know you are smart and would remember the in the US of A growing or your parents would.

[venkata4--2008]

Well said toldyouso21 & ttinsly. The brain dead Limbaugh and this Prez. fans as usual deny the facts. This Prez. is passing the decision of increasing the taxes to next president and so is the bringing troops back. For any next president one term is not sufficient to clean this mess. It will take 3 terms of cleaning this financial mess. And people responsible for this will be enjoying their retirement is Dubai. Our selves, Our kids are the ones who is going to pay for this.

[flreason]

lars008: You need to update your financial info. Latest figures show job losses, housing market collapsing, manufacturing level falling...

The only people who are benefitting from the current economy are those at the top. The rest of us are subsidizing their profiteering with our tax dollars. Meanwhile, corrupt Washington fat cats get ready to join their friends in Dubai--out of reach, in case the members of our justice system should suddenly get worried about taxpayer rebellion and develop consciences.

[toldyouso21]

Second, who cares how far in debt we go. I would like to see Saudi Arabia try to collect.Posted by bthrasher102 at 11:53 AM : Sep 06, 2007
exactly...Posted by lars008 at 12:06 PM : Sep 06, 2007

Understand and recognize the meaning of inflation. It means that as we print up more money, the more worthless it is and the more it takes to buy something. So who cares? The Australian dollar is almost worth as much as the US one. (used to be worth only 57% of our value) The pound that used to be 1.52 to each of our dollars is now worth about 2.14 to one of our dollars. What does that mean to you and me?

That chicken which used to cost .39/lb in 1999 is now 2.69/lb and that a pkg of chicken breasts that used to cost 4.79 will now cost you 8.50 to 10.00 and if THAT does not resonate some understanding then understand that the more stuff costs, the more YOU have to pay. So the gas that really costs 1.25 costs you 3.12 and will keep rising and the insurance that cost you 1200.00/year will zoom up to 1600.00 or higher, or maybe.....when the sales tax, hotel tax or restaurant tax or liquor or other hidden taxes/user fees hits 17% or higher and you are paying 8.00 for milk--you will get the point. And to think, nobody has to point a single gun at us--want to know what inflation can do to a country? Take a good look at Brazil--or read your history and realize that after WWII, in Germany, a wheelbarrow full of money could not buy a loaf of bread. Get a clue.

[toldyouso21]

:. I feel a bit optimistic about the possibility of having a democrat in charge and getting rid of this terrible Bush administration.
Posted by gretagreen at 12:32 PM : Sep 06, 2007

I don''t really like any of the candidates from either side. The Democrats have shown that they will not take a stand and fight for anything, but will either get Republicans in on a consensus vote (like for Iraq or illegal amnesty) or they will roll over and just do whatever Bush wants. That is not conviction, integrity or ballz, it is just sickening. They should have kept sending him the same spending bill about Iraq until the effort was hurting sooo much that Bush would have had to compromise. They could have gone on tv with blurbs about it was not them who were withholding funding and support from the troops, it was Bush and his veto pen. But they blinked, hell--they not only blinked, they batted their eyes, flirted with Bush and positively got Tourettes in nodding agreement while whining that their hands were tied. Then they reapproved the Patriot act, gave the green light to NAFTA and wholesale traffic rape by truckers from across the border, ok''d spy planes on Americans, did not revoke the immunity to war crimes laws.....

Yep. the only thing good about the Democrats and perhaps their saving grace is that they are not Republicans. But that is small comfort. To know they have nothing to offer except they are a different kind of vermin from the ones we abhor.

[tbweb]

Republicans and President Bush blast Democrats for being TAX and SPEND but with this out of control 9 Trillion Dollar Debt which grows larger by the day I''ll take TAX and SPEND Democrats over SPEND and NO TAX Republicans at this stage! At least Democrats get their money from raising Taxes and not from Interest accumulating Red Ink! There is no free money, one way or the other someone pays and it''s misleading to blast the Democrats for TAX and SPEND when Republican Debt and RED INK in the form of BORROW and SPEND with Interest in the Trillions is far worst!!

[jn122736]

I am surprised to see this article here or on any MSN sight. I wish more folks would do like Mark Knoller and CBS and write articles like this.

Mcmlx, nothing in your comment changes the fact that the Interest on the national debt MUST be included in the overall deficit for each fiscal year. Nor does it change the fact that the deficit for 2007 will be at least $700 billion.

You said, 5 trillion of that debt is owed to the US public.

Much of that $9 trillion was taken/stolen from the social security program surplus. Money paid (involuntarily) through income taxes by people expecting it to be used for security in their retirement years.

Quote from Wikipedia: %u201CA traditional defense of the national debt is that we "owe the debt to ourselves", but this is increasingly not true. U.S. Treasury statistics indicate that, at the end of 2006, foreigners held 44% of federal debt held by the public%u201D

You might find that a lot of people are starting to wake up to things like this.

Numbers and facts can be twisted and/or disingenuously presented, but the truth cannot be changed. The only people you can trick, or fool, are those who trust you, and that says a lot about the character and integrity of the tricksters.

[red164]

Stupid people trick easily.
Posted by mcmlx at 04:35 PM : Sep 06, 2007

That would apply to all those that voted for BUSH twice, no one alive is dumber than those folks.

[lars008-2009]

hahahahahaha

the debt to gdp was highr under demonic-rats roosevelt and truman....

sure beats demonic-rat dimmy kar-ter....

double digit inflation, double digit unemployment, double digit interest mortgage rates.... good one dimmy....

It''''s productivity, stupid.
http://www.optimist123.com/optimist/2007/05/its_productivit.html

che
ck out who is holding usa paper!!!
http://www.optimist123.com/optimist/2007/08/an-800-billion-.html

U.S. Economy: Expansion Was Faster Than Estimated
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP3CFLmKC2CQ&refer=worldwide
Deficit Falls to $205 Billion
http://www.breitbart.com/article.php?id=D8QAD5LG1&show_article=1
Good Thing We Cut Taxes
http://ezraklein.typepad.com/blog/2006/09/good_thing_we_c.html
Don''t Just Cut Taxes - Cut Spending
http://www.heritage.org/Press/Commentary/ed021802.cfm?RenderforPrint=1
The greatest economic boom ever
Just how red-hot is the current worldwide expansion? "This is far and away the strongest global economy I''ve seen in my business lifetime," U.S. Treasury Secretary Hank Paulson declared on a recent visit to Fortune''s offices.
http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134937/index.htm?section=money_latest

[jn122736]

This article says;
%u201CMr. Bush often boasts about his commitment to fiscal restraint, and trumpets his efforts to bring down the annual federal deficit from its all-time high of $413 billion in 2004.%u201D
**************

This statement deceptively indicates (as does Bush when he is making these brags) that the 2004 deficit was not of his making.


The article also says,
%u201CThe Administration forecasts a deficit this year of $205 billion. The forecast from the Congressional Budget Office is lower still at $158 billion.%u201D
**********

The national debt at the end of fiscal year 2006 was $8,515 trillion. The debt has risen to $9 trillion as of today (FY year 2007 ends Sept. 30th.)

That is a $500 billion increase in the overall debt for FY 2007. The only way Bush or anyone else can produce a figure of $205 billion is to NOT COUNT the $500 billion accrued interest on the debt that MUST be paid EVERY year.

If that is actually how they are figuring it, and IF they prove to be correct, then the actual deficit will be $700 billion for FY 2007.

BTW, the ANNUAL interest on the debt is currently the third highest, and almost equal to the first and second highest, expense item in the yearly expenses/drain on our tax dollars.