A hundred and eight billion dollars — $108,000,000,000. Not exactly an eye-popping sum anymore, in an era of multi-trillion-dollar annual budgets and multi-trillion-dollar annual deficits. Still, even with government spending streaking into the stratosphere, $108 billion is not mere chump change, especially when it’s leveraged as seed money.
Will the Obama spend-a-rama finish off the dollar as the world's reserve currency? It well may, and sooner than most people think. Any day now we may wake up to headlines announcing that the International Monetary Fund's SDR (Special Drawing Rights) is being adopted as the new global currency.
Next up for ailing mega-banks: a credit card meltdown. No surprise here, really; Americans have overused credit cards for years, trusting always in unending economic expansion and plentiful employment to guarantee their ability to service consumer debt.
Social Security and Medicare, Big Government’s two most cherished social-welfare programs, are running out of money far faster than expected, thanks to the persistent economic downturn. Medicare, which is already running a deficit, will run out of money by 2017, while Social Security will be broke 20 years after that, according to new estimates from the Obama Administration.
It’s official: this year’s budget deficit will be one for the record books. The latest figures released by the Obama Administration contemplate a $1.8 trillion deficit for fiscal 2009 as the United States economy continues to significantly underperform relative to earlier forecasts. This year’s record-setting deficit is now reckoned to be four times last year’s — the previous record-setter. Next year, the deficit is expected to decline but still to exceed $1.3 trillion — and that’s only if everything goes according to plan.