Bank boss says deficits paint bleak picture in U.S

WASHINGTON -- The persistence of big budget deficits raises risks to America's long-term economic health and need to be curbed, says Federal Reserve chairman Ben Bernanke. "The prospective increase in the budget deficit will place at risk future living standards of our country," Bernanke said. "As a result, I think it would be very desirable to take concrete steps to lower the prospective path of the deficit." Bernanke's comments on the budget deficit were contained in a written response to questions raised by Senator Robert Menendez after the Federal Reserve chief's appearance at a U.S. congressional hearing in February.

Last year's budget deficit came to $319 billion US, an improvement from 2004, but still the third-largest deficit ever recorded. This year, the White House is projecting the deficit to swell to $423 billion, which would set a record in dollar terms. The budget will come under "severe pressure" when baby boomers start retiring and collecting Social Security and Medicare benefits, Bernanke said.
Against that backdrop, "I am quite concerned about the intermediate to long-term federal budget outlook," he wrote.

http://calsun.canoe.ca/Business/2006/03/15/1488736-sun.html

* says the economy is going well :sarcasm:

over 400 billion in the hole this year, and more to come. And, that doesn't count the off-budget stuff, tricks like pushing expenses into the next fiscal year, unfunded Federal retirements, or other future entitlements. Or trade deficits that have to be paid somehow.

We're a few trillion in the hole, and if we taxed everyone at 100% we still couldn't pay it off. When the crash comes, watch them devalue the dollar so they can pay it off in cheap ones. Then, whoever is in office will get blamed, with the spendthrifts on both sides hiding under their desks with nothing but a finger sticking out pointing at the poor slobs holding the bag.

Another tax cut will solve the problem, though, and all will be well.

(If you got any money at all-- buy gold)

I honestly don't know when it will happen, but it's going to happen.. I just don't see anyway around it.. I don't know if it will be in three months or three years, but we are going to hit the wall, and it won't be pretty.. I'd bet everything I own on it.. I'd bet on it, but I would want gold or silver up for the bet, because what would be the point of winning worthless greenbacks?