The document discusses the rising concerns regarding the U.S. federal budget, highlighting the unsustainable growth of national debt currently exceeding $10 trillion. It emphasizes the burden of consumer debt and required spending for public services versus tax revenue, leading to persistent deficits and future fiscal insecurity. The analysis projects a critical future where increasing retiree obligations and military expenditures further complicate the economy and threaten financial stability.

1. federal budget 101 Expected Future: Security Implosion Fiscal + Military + Economic

2. How much is too much Consumer Debt ? Total Consumer Debt : $2.6 trillion All Financial Obligations Ratio “ Typical homeowner spends around $19.15 of each dollar of their after tax income on all “mandatory” financial obligations including car lease payments, rental properties, property taxes and homeowner’s insurance .” Mortgages, car loans, credit cards & all other debt combined as of June 2008: $ 112,043 average per US household Source: http://www.federalreserve.gov/Releases/housedebt/

3. How much is too much? The Outstanding Public Debt as of 30 Nov 2008 $10,662,088,68,458.73 trillion … or $ 34,936.04 per man, woman and child The National Debt has continued to increase an average of $ 3.86 billion per day since September 28, 2007! How much is too much National Debt ? Source: http://www.brillig.com/debt_clock/

5. U.S. Real GDP + $11.5 trillion U.S. National Debt - $ 10.6 trillion [92% of GDP] Real Median Income + $50,233 per Household Household Debt - $ 112,043 per Household [2.2* income] Unfunded Government - $ 500,000 per Household [10* income] Financial Obligations Source: “Taxpayers on the hook for $59 trillion” USA Today 5/29/2007 (2007 figures) How much is too much Unfunded? Reality Check

6. Source: http://www.cbpp.org/9-12-08bud.htm For the 2002-2011 period tax cuts and increases in security programs account for more than four-fifths of the fiscal deterioration caused by policy actions. Federal Budget One Trillion Dollar Deterioration $ 7.2 Trillion (-) $ 1.0 Trillion (-) Deterioration solely from tax cuts and budget increases in security-related programs $9.4 Trillion $1,256 Billion ($1.3 T.) Total deterioration $3.8 Trillion deficit (-) $546 Billion deficit (-) Sept. 2008 estimate $5.6 Trillion surplus $710 Billion surplus Jan. 2001 projection Cumulative: 2002-11 2009 The Trillion-Dollar Deterioration in the Budget (Based on CBO’s Jan 01 & Sept 08 Budget Projections)

7. Federal Budget annual plan for spending tax revenue ↑↑↑ Spending Increases in military and other security programs account for another 40 % of the $ 1 Trillion deterioration. ↓↓↓ Tax Revenue Deterioration was NOT due to performance of the economy-- tax cuts accounting for 42 % of the $ 1 Trillion deterioration Source: http://www.cbpp.org/9-12-08bud.htm

8. What would One Trillion Dollars buy? This amount would allow us to repair all of our nations 77,000 deteriorated BRIDGES and still have $519 billion to spend. If you spent $750,000 twice each day for 200 years, you’d be halfway to $1,000,000,000,000. ? $700 billion > currently allocated for the U.S. war in Iraq. This amount would allow us to rebuild all of our nations 33,000 deteriorating SCHOOLS and still have $664 billion to spend.

9. How much is too much? Recent Additions to U.S. Public Debt: Fiscal Year (10/01) Value % of GDP 2000-01 $144.5 billion 1.4% 2001-02 $409.5 billion 3.9% 2002-03 $589.0 billion 5.5% 2003-04 $605.0 billion 5.3% 2004-05 $523.0 billion 4.3% 2005-06 $536.5 billion 4.1% 2006-07 $459.5 billion 3.4% 2007-08 $1,017.0 billion (est.) 7.4% How much is too much National Debt ? Source: http://en.wikipedia.org/wiki/United_States_public_debt#cite_note-46 The key differences between the “ Reported” Budget Deficit and the Change in Public Debt : 1. Social Security surplus , which reduces the "off-budget" deficit often reported in the media 2. Non-Budgeted “ Supplemental” spending such as for the Iraq and Afghanistan wars

10. Debt Financing quick fix for budget shortfalls Source: http://www.treas.gov/tic/mfh.txt Foreign 26% Federal 52%

11. Debt Financing $652.9 b $585.5 b TOTAL (Oct 08) $ 3042.7 b.

12. Debt Financing America's Overseas Creditors Major foreign holders of U.S. Treasury securities. SOURCE: U.S. Treasury | The Washington Post - January 3, 2009

13. 2018 Looking forward …. to the Great Meltdown Permanent Tax Cuts  Persistent Budgetary Deficits Interest  2nd largest Budget Obligation Boomer Tsunami overwhelms Retirement Obligations 2030 The last of 78 million retiring Baby Boomers: 1946+65 years = 2011 1964+66 years = 2030 Retirement Program “ Solvency ” Issues Healthcare Unsustainable Trajectory Buyers for National Debt Treasury Securities?

14. Less Tax Revenue Source: http://www.cbpp.org/pubs/fedbud.htm

15. More Expenditures Source: http://www.gao.gov/financial/fy2007/guide.pdf

16. More Interest on Debt Interest Obligation $# % Change $ 12 b. +119 $ 42 b. +250 $169 b. +302 $229 b. +125 $260 b +014 Decade 1959-69 1969-79 1979-89 1989-99 1999-09

17. Retiring Boomers sell-off investment Assets to cover living expenses [ ↓ price of assets?] KEY Dates For The Trust Fund EXHAUSTION OASI DI OASDI HI First year Outgo > Income - Interest . . . 2018 2005 2017 2008 First year Outgo > Income + Interest . . .2028 2012 2027 2010 Year Trust Fund Assets exhausted . . . . 2042 2025 2041 2019 Assets end 2007 (in billions) . . . . . . . . . . .$2,023.6 $214.9 $42.9 Loss of Confidence in Solvency of US, fewer foreign buyers, higher required yield/interest Fewer Buyers for National Debt ?

18. How much is too much? What does it all MEAN ? Less tax revenue More Spending More Debt More Interest due More Retirees obligations Persistent deficits

19. federal budget 101 Expected Future: Security Implosion Thank U for Listening! Kay E. Strong, PhD 10 Dec 08 Fiscal IN -Security Economic NON -Growth Military UN -Sustainability