Deficits
This article appeared in yesterday's NY Post:

Like a person packing on pounds, the U.S. keeps adding to its flabby budget deficits, endangering the nation's economic health and the pocketbooks of ordinary Americans.

Here's the worry: Persistent deficits will lead to higher borrowing costs for consumers and companies, slowing economic activity.

As Uncle Sam seeks to borrow ever more to finance those deficits, rates on Treasury securities would rise to entice investors. That would push up other interest rates, such as home mortgages, many auto loans, some home equity lines of credit and some credit cards.

"That's the pocketbook risk to the American consumer," said Greg McBride, a senior financial analyst at Bankrate.com, an online financial service.

There was a graphic in the article (not on the website)that showed growing deficit figures in nominal amounts and using an inaccurate scale. Is the deficit large as a percentage of GDP? Judge for yourself, but the 2004 Budget was 3.6% of GDP, not far outside the historic average. You won't however find that figure in the first article.
- posted by Base10 @ 9:48 AM