Posted on Tuesday, January 5, 2010
Expect a $1.6 trillion deficit for 2010, over 10% of GDP (some are estimating $2 trillion closer to 15% of GDP). Since 2007 the US balance sheet has tripled. Without including SS or Medi, national debt is over $12 trillion. The spending has a price tag of its own. The US will have to borrow another $3.5 trillion minimum over the next 3 years to finance this mess. And the Treasury has to refinance about $1.6 trillion maturing this year. The result, eventually if there is no end the dollar will decline further.