US needs to borrow $171 billion in 60 days
- Government announces plans to borrow $27 billion
Jul 30, 2008
AP:WASHINGTON) The Bush administration gave details Wednesday on how
it plans to borrow the billions of dollars it will need to cope with
the soaring budget deficits.
Those plans include raising $27 billion by selling a new 10-year
note and a new 30-year bond at the regularly scheduled quarterly
auctions to be held next week. The government needs to borrow $171
billion during the current July-September quarter, the second
highest quarterly borrowing total on record.
The increased borrowing needs reflect the exploding federal budget
deficit which is projected to more than double in size this year and
to hit an all-time high of $482 billion in the 2009 budget year.
The administration released the new deficit forecasts on Monday. It
blamed the surge on the sagging economy and the effort to keep the
country from falling into a deep recession by mailing out 130
million economic stimulus payments.
Democratic critics charged that the soaring deficits showed the
total failure of the Bush administration to put the government's
fiscal house in order, however. They contended that whoever wins the
presidency in November will inherit a huge fiscal mess that will
severely restrain the next president's ability to fulfill his own
The administration projected that the deficit for this budget year,
which ends on Sept. 30, will total $389 billion, more than double
the $161.5 billion deficit for 2007. For the 2009 budget year, which
will cover the first year of the new president, the administration
is forecasting a deficit that will surge to an all-time high in
dollar terms of $482 billion, far exceeding the old record of $413
billion set in 2004.
That deficit estimate could soar even higher. It does not include
the expected full cost of funding the wars in Iraq and Afghanistan
or the costs associated with a massive housing rescue measure that
Congress passed last week and President Bush signed into law on
As part of the housing measure, Congress voted to increase the
national debt limit by $800 billion from $9.815 trillion to a new
limit of $10.615 trillion.
The borrowing plans announced by the Treasury Department on
Wednesday include raising $17 billion by selling a new 10-year note
on Aug. 6 and raising $10 billion by selling a new 30-year bond on
WORLD VIEW NEWS SERVICE
To subscribe to this group, send an email to:
NEWS ARCHIVE IS OPEN TO PUBLIC VIEW
Need some good karma? Appreciate the service?
Please consider donating to WVNS today.
Email ummyakoub@... for instructions.
To leave this list, send an email to: