So we're only two weeks into the new year and we find out that the US is facing a $400 billion budget deficit (click here for article on yahoo).
The question is so what? The real issue is not so much the deficit as the total debt.
According to the Bureau of Public Debt, the total debt is b now about $8.15 Trillion. That's up from $5.8 Trillion in FY2001. (Click here to see the data at the Bureau of Public Debt)
That's a lot of money but again, so what? The key is to compare debt to GDP
Given that current GDP is $12.6 Trillion GDP and in 2001 it was $10.1 Trillion, debt went from 57% of GDP in 2001 to 64% today.(GDP Data at Bureau of Economic Analysis)
Bummer of an increase.
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