$368bn (without the cost of mil ops)

[Calabi_Yau]

I think this is something I should be concerned about, but not being an economist, I don’t know (not a rant, but mods please feel free to move).

–BBC News

The US budget deficit is set to hit a worse-than-expected $368bn (£197bn) this year, officials said on Tuesday.

The cost of military operations still needs to be factored in, with analysts saying the deficit could end up a further $100bn in the red.

and

However, analysts say the new figures fail to take into account the potential $2-$3.8 trillion costs of the president’s plan to revamp state pensions and extend tax cuts. The figure could also be worsened by any further military costs.

Anyone want to tell me what a “trillion” is?

Need a little help here.

[welby]

A trillion is a thousand billion dollars.

Put another way, it’s a crapload of dough.

[Neurotik]

$1,000,000,000,000.

[Calabi_Yau]

Thanks Welby,

Another stupid question - where does this money come from?

–

[Jonathan_Chance]

Bonds, mostly. The US government issues bonds and varying rates of interest to finance spending that’s not covered through taxation.

[Calabi_Yau]

Thanks Jonathan Chance,

Seems like the US is borrowing a heck of a lot of money.

[Jonathan_Chance]

And has been for one hell of a long time.

Grr. This is my one uncompromsing hot-button issue, fiscal policy. Without controlling the federal budget (either way…higher taxes or lower spending) the dollar will continue to weaken (thus, I admit, bringing the trade imbalance down by making foreign goods more expensive in the US) and we’ll just continue to push up the price when the day of reckoning comes.

The National Debt Clock - 7.5 Trillion Dollars