To put this into perspective, if the government was a person who was earning $50,000 per year and spending $100,000 per year this budgetary cut would be just under $500 ...
Now, when the government starts issuing $1.7 Trillion in treasury bills to cover the speninding in the 2010 budget how will they be able to sell them? Either they need to entice people to buy 4 times as much in treasury bills as they did a couple of years ago (by raising interest rates) or the federal reserve will use quantitative easing (money printing) to buy the debt themself (resulting in high inflation). Assuming their interest rate only becomes a modest 5% the ammoung of money required to service the debt from the deficit in 2010 would be in the range of $85 Billion, which is 5 times the ammount Obama cut from the budget ...
