Deficit sets record $192.3B

[Pauls' Revere]

Does anyone know what size the GDP is? I heard/read our economy is roughly a 15T economy for the USA. I also heard that once the deficit hits 5% of that GDP we are in a world of S*&#!

If that is true, then this is really disturbing...

The Congressional Budget Office estimated last month that President Barack Obama's budget proposals would produce $9.3 trillion in deficits over the next decade, a figure $2.3 trillion higher than estimates made in February in the administration's first budget proposal.

and we essentially would have a deficit economy representing roughly 62% of our GDP?



http://news.yahoo.com/s/ap/20090411/ap_on_bi_go_ec_fi/federal_budget

 

[LATruth]

Again, I just threw up in my mouth.

 

[Drknows]

Does anyone know what size the GDP is?

and we essentially would have a deficit economy representing roughly 62% of our GDP?

I know it's crazy huh? Well i think you're right on track but what makes up our GDP?

http://useconomy.about.com/od/grossdomesticproduct/f/GDP_Components.htm

If you look at the components of our GDP the private sector is shrinking. The only sectors that are growing is health care and Government jobs (which is funded by the private sector) then you have retail but with inflation those imports will be expensive. Construction and real estate is at a standstill. Autos dead.

In reality our debt is way pass 5 percent of our GDP. It is our GDP.

We wont have to wait a decade to see the effects of these crazy economic polices.


That's why i think Ron Paul said he might be running in 4 years.and not for the nomination.

 

[SevenEyedJeff]

Let Helicopter Ben keep monetizing the debt to make up for an ever increasing shortfall. But don't worry, the dollar is strong and the economy is recovering fast.

 

[Pauls' Revere]

By this definition on this list the USA has a 13T GDP economy.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_growth

From link above:
The deficit already totals $956.8 billion for the first six months of the budget year, also a record for that period. The Obama administration projects the deficit for the entire year will hit $1.75 trillion

Deficit to hit 4% of GDP, predict CBO.
http://www.capitalgainsandgames.com/blog/pete-davis/507/deficit-increase-4-gdp-confirmed-cbo

What is the critical mass percentage where deficit percentage of GDP becomes unsustainable and it runs away?

I would love to see an dollar value overlay against the deficit percentage GDP to see if there is a corelation.

If these budget proposals pass 9.3T deficit of a 13T economy means our deficit would represent roughly 72% of our economy!