Countdown to American bankruptcy

July 1, 2010 14:50

Federal Debt Could Reach 100% of America’s GDP by 2025, Says Congressional Budget Office. Who ya gonna believe, Obama or your own lyin’ eyes?

By Fred Lucas at

On the same day President Barack Obama told a Wisconsin town hall gathering that his policies mean “the economy is headed in the right direction,” the non-partisan Congressional Budget Office (CBO) projected that federal debt could reach 87 percent of America’s gross domestic production by 2020, and surpass 100 percent of GDP by 2025.

Nevertheless, the president told the crowd in Racine, Wisc. – a town with the second highest unemployment in the state – that the economy is turning the corner.

“We had to take some tough steps to pull the country out of the freefall we faced when I took office,” Obama said. “Back then, the economy was shrinking faster than it had in decades. Today, it’s growing again. Back then, we were losing an average of 750,000 jobs a month. Today, we’ve added private sector jobs for five months in a row.”

Still, unemployment has risen since Obama took office in January 2009 – it is now at 9.7 percent.

But the report by the CBO, the accounting arm of Congress, said deficit spending and long-term debt will hinder economic growth.


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