We need people to make money in the stock market to help pay down the debt that has skyrocketed the past 2 years. Our grandchildren will be stuck paying for all the money wasted by overspending.
The budget deficit is when the government spends more than it receives in revenue. In FY 2011 the deficit is projected to be $1.26 trillion, the difference between $3.83 trillion in spending and $2.57 trillion in revenue. Although this deficit huge, it is less than the $1.6 trillion deficit in FY 2010, and the $1.4 trillion deficit in FY 2009. (Source: OMB Table S-1) http://useconomy.about.com/od/fiscalpolicy/p/deficit.htm
If China stops buying our debt the dollar will drop and we would not be able to buy their goods. Inflation would skyrocket.
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