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Democrat Diversion Strategy Succeeds Again

January 15, 2011

Democrat Diversion Strategy Succeeds Again.

On the 13th of January, Standard and Poor’s and Moody’s announced that U.S. debts are piling up so fast that the AAA bond rating is in serious jeopardy.  What does that mean?  The U.S. now has $14 trillion in public debt.  At the current average interest rate of 3.24% (ten-year Treasury) over the past two years, that debt will cost $450 billion to service.  If the rates should rise to their twenty-year average of 5.5%, the cost of carrying that same debt will be $750 billion.  The loss of the AAA rating would cause the rate to exceed that historical level, forcing the interest bill to be even higher and making it the single largest budget item, approaching $1.0 trillion.

 

The Labor Department just announced that jobless claims increased an unexpected figure of 35,000 last week.  Home foreclosures exceeded 1,000,000 in 2010 and will surpass that level in 2011.  The EPA just announced that it, for the first time ever, has withdrawn a mining permit for a mountaintop coal operation in West Virginia.  This action also threatens dozens of other coal mining projects in the Appalachian region, further killing jobs and, together with the oil drilling moratoriums and new regulations, increasing dependence and spending on foreign sources of energy.
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