USA Borrows $5 Billion Per Day In November

Wednesday, November 16, 2005

The USA has stepped up its borrowing massively in November. Data of the Bureau of the Public Debt shows that American Debt stood a $8.015 trillion at November 1 and has since risen $51 billion to the new record of $8.066 trillion by November 15. This amounts to $5.1 billion new debt for every working day. US debts had increased at a rate of $3 billion per day from January to October 2005. Something's getting out of hand here.
Maybe it is the war. Republican Senator John McCain told news agency UPI on Tuesday that the massive Pentagon budget for the war in Iraq can't be sustained because of the need to replace weapons.
"We have unsustainable defense spending," said McCain, a chief proponent of military acquisition reform. "Refurbishment or replacement sooner than planned is putting further pressure on DOD's investment accounts. We cannot sustain the number of weapons programs that are in the program of record."
The Arizona Republican said the Defense Department spent $291 billion on the top five weapons systems in 2000 but the top five weapons systems in 2005 cost nearly $550 billion. One of those top five systems, the FA-22, has seen unit costs increase almost 190 percent," he said.
The Pentagon's budget for 2006 was $441 billion with a $50 billion fund to pay for military operations in Afghanistan and Iraq, which cost a combined $5.5 billion a month.
According to the White House projections public debt will have hit $10 trillion before president Bush will go home. After windfall revenues this year the budget deficit is expected to resume its steep upward trend in the years to come. For more on this read the post "US(SR) 6-Year Budget Plan Not very Convincing - Disturbing Fine Print."

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