The timer is running on Obama’s debt bomb. Can we defuse it in time? Hmm…let’s see.
The current federal budget deficit is $1.15 trillion. The House Budget Committee just signed of on a $32 billion reduction in spending to year-end. $32 billion over 10 months yields an annualized spending reduction of about $38.4 billion, which is about 3.34% of the deficit. So, at this rate, we can achieve parity in 30 years. It takes a real optimist to believe that Obama’s deficit bomb won’t detonate before then.
But, who knows. At heart, I myself am an optimist who not only believes in miracles, but often rely on them. Before I retired, I kept a sign on my office wall that read: While the odds of a miracle are very, very low, they are not exactly 0.
The national budget deficit is the difference between the total spending budget (including interest on debt) authorized by Congress for each year, and total tax receipts. For this fiscal year alone (October 1, 2010, to September 30, 2011), the shortfall is projected to be 1.15 trillion dollars.