If you think the Obama Administration’s plan to hold defense spending steady over the next few years sounds feasible, consider this. The national debt has increased by nearly a trillion dollars since election day, and the deficit of tax receipts below federal spending will equal 13% of the economy this year. Just the interest on the federal debt will cost taxpayers $565 billion this year (fiscal 2009). If rates rise as the federal debt does, interest payments on the debt could increase to a trillion dollars per year by the end of President Obama’s first term. This is the first year on record that the future obligations of federal entitlement programs exceed the net worth of all U.S. households.
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