U.S. Faces Record Borrowing Requirement

Vance

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By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON - The federal government, running record budget deficits over the past two years, is projecting that it will have to borrow a record $147 billion in the first three months of 2005, the Treasury Department (news - web sites) announced Monday.



The department projected net borrowing needs of $100 billion for the current October-December quarter, less than the $122 billion it had earlier estimated would be needed to meet the government's obligations.

Treasury said it is currently projecting net borrowing of $147 billion in the January-March quarter of next year, which would top the previous record net borrowing amount for a single quarter of $146 billion set in the January-March quarter of this year.

In the recently completed July-September quarter, Treasury borrowed a net $89 billion and ended the quarter with a cash balance of $36 billion. For the current quarter, Treasury is projecting to end the three-month period with a cash balance of $25 billion.

With the huge borrowing needs, the government is only $25 million below the national debt ceiling of $7.384 trillion. It has been using accounting maneuvers with the debt held in the government's trust funds to keep from going over the limit.

More... http://story.news.yahoo.com/news?tmpl=story&cid=533&e=4&u=/ap/20041101/ap_on_go_pr_wh/borrowing


As I said in other post -- My tip: When you have your own child(ren) and grandchild(ren), be sure to explain to them that they will have to work 12 - 16 hours and 6 - 7 days per week to pay off the huge debts/tax in future. Ok? Good. We don't need to disappoint our child(ren) and grandchild(ren) right?
 
Well shit, this administration sure didn't last long, lol.
With the dollar weakening and the eurodollar strengthening and the Chinese growing into an economic superpower, there will be a lot of landmines ahead and I get the feeling Kerry will be glad he is not a part of it.
 
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