The National Deficit from 6 to 9 TRILLION Dollars under Bush
In continuing my “Buy Gold” series, let’s look at the national debt. More than anything our national debt devalues wealth in this country by watering down the dollar, it is as simple as that.
For those who don’t know how much a trillion dollars is, let alone 3 trillion dollars…it looks like this $1,000,000,000,000.00
Take that and multiply that by 3. That’s how much our national debt increased under Bush.
When Clinton started his presidency in 1992, the national debt was at 4.6 trillion dollars, in the end of 2000 when he departed it ended at 5.7 trillion dollars, an increase of about 1.1 trillion dollars.
Then came Bush and immediately after his first year as president, the debt shot up to 6.2 trillion dollars and today stands at about 9.5 trillion dollars.
And it ain’t decreasing anytime soon. For fiscal 2009, it is expected to surge by anywhere from 500-700 billion dollars. Because individuals and companies are making less, our tax collections are dropping and due to ever increasing govt expenditures our spending is growing. So our intelligent government is making less and spending more. Athletes and Entertainers and Govt Employees (which include politicians) and CEOs are making more money than ever before. The middle class are suffering from loss of jobs, decrease in value of their retirement savings, increase in spending from inflation…just the entire kitchen sink of misery all at once.
Under Bush we have indebted this country by an ungodly amount, obliterated capital (bank stocks, tech stocks, retailers, 401ks and IRAs…all in a freefall), made country more dependent on foreign oil, did nothing to improve our aging infrastructure, increased illegal immigration/poverty by an unmeasurable amount and created a never ending war in Iraq.
Clinton gave Bush a relatively clean slate…sure we had the dot com bubble but if I remember gas prices were around a buck fifty, this country had a surplus, was involved in no wars and unemployment was at historic lows. Boy did things change over 8 years.
I know it is unfair to blame the president on all things bad, but he had his hands dirty in every aspect of the problems we face. It was he and Cheney who started the war in Iraq. It was he who passed the tax cut bill that bankrupted this country. It was he who fiddled while Wall Street, Fannie/Freddie, Federal Reserve and Speculators allowed the housing bubble to grow to epic proportions and it was he who didn’t act fast enough to give it a softer landing. It was he who opened our borders everyone from the third world and refused to enforce immigration laws. It was he who would rather pass further tax cuts instead of spending it to upgrade our aging infrastructure of highways, bridges, levees, power grid, subways and more. It was he who stymied alternative energy and conservation efforts that contributed to oil spiking and acted recklessly to devalue the dollar and thus causing the mother of all spikes in commodities.
I strongly feel that it will take 2-3 years before we see the light at the end of the tunnel in this mess we are in. Do not bet on a V shaped recovery. It will take a long time before coffers of banks are replenished and most of the incompetent Bush appointees in government are swept out.
In the meantime, invest in the market conservatively and use gold as a hedge. You will have plenty of time to ride the gold bull market, you do not need to jump in all at once.
Here are the benefactors of the Bush recession: