'Experts: Bailout could balloon deficit
Published: Oct. 19, 2008
http://www.upi.com/Top_News/2008/10/19/Experts_Bailout_could_balloon_deficit
/UPI-96751224459306/
Published: Oct. 19, 2008
http://www.upi.com/Top_News/2008/10/19/Experts_Bailout_could_balloon_deficit
/UPI-96751224459306/
BOSTON, Oct. 19 (UPI) -- It still remains unclear exactly how the U.S.
government's bailout of the nation's financial industry will be bankrolled, experts say.
The Boston Globe reported Sunday that the $700 billion bailout will require the Treasury to borrow hundreds of billions of dollars, adding to an already ballooning deficit.
Economists say the nation's deficit will top $700 billion in the current fiscal year, which began Oct. 1, up from about $450 billion the previous year, the report said. Projections for next year too are gloomy.
The newspaper reported that the government will probably have to borrow some $1.5 trillion to keep operating, adding to a national debt of more than $10 trillion.
"When you start looking at the trajectory of the deficit and the debt, whoever is elected the next president will be handcuffed," said Rudolph Penner, senior fellow at the Urban Institute, a Washington think tank.
"Taxes almost certainly have to go up at some point."
Borrowing money from abroad makes the U.S. economy more dependent on foreign governments and investors.
"It's important to get the economy off its back, but once we get through this, we have to deal with these big deficits," said Mark Zandi, chief economist at Moody's Economy.com. "You can cut spending or raise taxes, and we'll probably have to do both."'
government's bailout of the nation's financial industry will be bankrolled, experts say.
The Boston Globe reported Sunday that the $700 billion bailout will require the Treasury to borrow hundreds of billions of dollars, adding to an already ballooning deficit.
Economists say the nation's deficit will top $700 billion in the current fiscal year, which began Oct. 1, up from about $450 billion the previous year, the report said. Projections for next year too are gloomy.
The newspaper reported that the government will probably have to borrow some $1.5 trillion to keep operating, adding to a national debt of more than $10 trillion.
"When you start looking at the trajectory of the deficit and the debt, whoever is elected the next president will be handcuffed," said Rudolph Penner, senior fellow at the Urban Institute, a Washington think tank.
"Taxes almost certainly have to go up at some point."
Borrowing money from abroad makes the U.S. economy more dependent on foreign governments and investors.
"It's important to get the economy off its back, but once we get through this, we have to deal with these big deficits," said Mark Zandi, chief economist at Moody's Economy.com. "You can cut spending or raise taxes, and we'll probably have to do both."'
Ook daarover hoort u niets van de Nederlandse journalisten als bijvoorbeeld Maarten Schinkel, financieel commentator van de NRC, die op 24 september 2008 de Amerikaanse volksvertegenwoordigers bekritiseerde omdat ze 'het prachtige reddingsplan van 700 miljard dollar' niet zo snel mogelijk door het Congres hadden gejaagd. Dat in zijn woorden 'prachtige reddingsplan van 700 miljard dollar' moest volgens hem niet het slachtoffer worden van 'politiek gesteggel... Dus het is een beetje dom wat er gebeurt nu in Amerika, dat je zo'n mooi plan hebt en dat bijna ten onder dreigt te gaan aan geharrewar.' Volgens Schinkel had het 'politiek gesteggel' met dat 'prachtige reddingsplan' allemaal te maken met de Amerikaanse verkiezingen. Met andere woorden, de politici van de belastingbetalers moesten zo snel mogelijk een blanco cheque verstrekken zodat bankiers, tegen wie inmiddels een officieel juridisch onderzoek loopt wegens mogelijke corruptie, kunnen doorgaan met de luchthandel. Maarten zei daarbij niets over waar het geld vandaan moest komen en over het feit dat dit de gigantische schuld van de VS alleen maar zou vergroten. Geld lenen om het failliete leensysteem overeind te houden, en toch financieel commentator zijn van de slijpsteen voor de geest.
'Better stay away from those
That carry around a fire hose
Keep a clean nose
Watch the plain clothes
You don't need a weather man
To know which way the wind blows'
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