US Debt Eclipses Economy, Reaching $16 Trillion This Week

Posted by Heartmind _Featured_, Economy Tuesday, September 4th, 2012

(RussiaToday) The US government is about to announce its $16 trillion debt, a landmark number that has more than tripled during the last two presidencies. At 104 per cent of the nation’s gross domestic product, the debt is now larger than the US economy itself.

The federal government closed Thursday with $15.99 trillion in debt – but some budget analysts think it most likely reached $16 trillion by the end of the day, the Washington Examiner reported. The news comes as Republicans and Democrats formally nominate their presidential candidates, and the official announcement will likely come on the first day of the Democratic National Convention on Tuesday.

“This is a grim landmark for the United States. Yet the president seems strangely unconcerned,” said Sen. Jeff Sessions of the Senate Budget Committee.

Each day, the debt grows by roughly $3.5 billion, or about $2 million per minute.

Twelve years ago, before the election of George Bush, the debt stood at $5.6 trillion. In the months before President Obama took office, the debt was $9.6 trillion. During the last presidency, it has increased by $6.4 trillion – two-thirds of its 2008 amount. The current president has overseen the largest debt explosion in US history.

This year marks the fourth consecutive year with a $1 trillion budget shortfall.

A top adviser to President Obama said the commander in chief had a “plausible plan” to stabilize the debt – without reducing it.