Analysis Sees Danger Of Much Higher Deficits In Coming Decade

October 12, 2009

The Washington Times reports that "if the White House cannot ratchet down the growth rate of discretionary spending during the next 10 years as fast as it proposes, total budget deficits are likely to be much higher than the $9 trillion it forecast last month. To meet its deficit goals, moreover, interest rates over the same period will have to be significantly lower on average than they were during the 1990s." According to Brian M. Riedl, a Heritage Foundation budget analyst, "if these and other budget assumptions do not hold up, deficits during the next 10 years could total $13 trillion -- $4 trillion higher than recent estimates by the Obama administration and the Congressional Budget Office (CBO)."

National Debt Seen As Threat To US Future. In an op-ed in the Wall Street Journal Lawrence Kadish, real estate investor, writes that there is a threat posed to the United States' financial system over interest bearing Treasury securities. He says that interest on the United States' debt is what makes the future uncertain. He concludes that voters need to take action over the national debt.