Geithner tried to reassure his Chinese counterparts that the federal budget deficit would not be allowed to expand out of control.

From Marketwatch.com

China's central bank holds an estimated $1.2 trillion worth of U.S. dollar assets.

In his opening remarks, Treasury Secretary Timothy Geithner tried to reassure his Chinese counterparts that the federal budget deficit would not be allowed to expand out of control.

"Already savings are up and our external deficit has fallen, and we are committed to taking measures to maintaining greater personal saving and to reducing the federal deficit to a sustainable level by 2013," Geithner said.

Chinese officials have unanimously criticized the buildup in the U.S. deficit and the Federal Reserve's expansionary monetary policy.

Fed chief Ben Bernanke said on Sunday that Fed policy is aimed at maintaining a strong U.S. currency.

Analysts said the talks might make progress is expanding China's role at the International Monetary Fund.

From the U.S. perspective, one goal of the discussions is to open up Chinese consumer markets to U.S. exports.

"China's success in shifting the structure of the economy towards domestic-led growth, including a greater role for spending by China's citizens, will be a huge contribution to more rapid, balanced and sustained global growth," Geithner said.

History Of Gov't-Run Health Care Is A Study In Skyrocketing Costs

From Ibdeditorials.com

In considering whether to expand the government's role in the delivery of health care or in health care insurance, it is worth looking at Medicare and Medicaid.

These two huge programs already make the government the largest player in the health care industry. The profligate nature of these two programs should raise lots of doubt about the Obama program doing anything but "busting" the budget.

In 1968 total spending by the federal government was $178.1 billion dollars. Forty years later in 2007, total spending had risen to $2,728.9 billion dollars. So the budget of the U.S. increased in dollar terms 15.3 times in that 40-year span.

Growing Federal Debt threatens US National Security

From Isria.com

Republican Leader highlights consequences of massive new debt on the future of America’s national security-

‘The national debt threatens our way of life; it threatens the value of our national currency; and it threatens our ability to pay for entitlements that millions of Americans depend on. Yet, just as importantly, the national debt also endangers our position in the world, the long term capabilities of our military, and the long-term viability of the all-volunteer force that is currently serving us so ably and courageously in two very challenging wars’

Entitlement Reform May Begin With Social Security

From tpmdc.talkingpointsmemo.com

"I think we're in a position to be able to, either at the end of this year or early next year, start laying out a broader picture about how we are going to handle entitlements in a serious way," Obama said. "It may start with Social Security because that's, frankly, the easier one."

Obama says debt and deficits are "deep concerns"

From Reuters.com

President Barack Obama said on Wednesday that the national debt and budget deficit were "deep concerns" and that he was very worried about government spending. "The debt and deficit are deep concerns of mine," Obama told reporters during a televised news conference from the White House, explaining why he thinks the cost of healthcare needs to be reined in.

Actions speak louder than words.

National Debt by year

From Seekingalpha.com

Below is the National Debt by year since the creation of our Republic. Since the creation of the Federal Reserve the National Debt has gone up by 400,000%.

The most fascinating period was the Presidency of Andrew Jackson from 1829 to 1837. He inherited a National Debt of $58 million and reduced it to $33,000 by 1835. No wonder the bankers hated him. We've added $10 trillion of debt since 1981.

Date	Dollar Amount
07/22/2009 09/30/2008	11,634,723,000,000.00 10,024,724,896,912.49
09/30/2007	9,007,653,372,262.48
09/30/2006	8,506,973,899,215.23
09/30/2005	7,932,709,661,723.50
09/30/2004	7,379,052,696,330.32
09/30/2003	6,783,231,062,743.62
09/30/2002	6,228,235,965,597.16
09/30/2001	5,807,463,412,200.06
09/30/2000	5,674,178,209,886.86

09/30/1999	5,656,270,901,615.43
09/30/1998	5,526,193,008,897.62
09/30/1997	5,413,146,011,397.34
09/30/1996	5,224,810,939,135.73
09/29/1995	4,973,982,900,709.39
09/30/1994	4,692,749,910,013.32
09/30/1993	4,411,488,883,139.38
09/30/1992	4,064,620,655,521.66
09/30/1991	3,665,303,351,697.03
09/28/1990	3,233,313,451,777.25
09/29/1989	2,857,430,960,187.32
09/30/1988	2,602,337,712,041.16
09/30/1987	2,350,276,890,953.00
09/30/1986	2,125,302,616,658.42
09/30/1985	* 1,823,103,000,000.00
09/30/1984	* 1,572,266,000,000.00
09/30/1983	* 1,377,210,000,000.00
09/30/1982	* 1,142,034,000,000.00
09/30/1981	* 997,855,000,000.00
09/30/1980	* 907,701,000,000.00
09/30/1979	* 826,519,000,000.00
09/30/1978	* 771,544,000,000.00
09/30/1977	* 698,840,000,000.00
06/30/1976	* 620,433,000,000.00
06/30/1975	* 533,189,000,000.00
06/30/1974	475,059,815,731.55
06/30/1973	458,141,605,312.09
06/30/1972	427,260,460,940.50
06/30/1971	398,129,744,455.54
06/30/1970	370,918,706,949.93
06/30/1969	353,720,253,841.41
06/30/1968	347,578,406,425.88
06/30/1967	326,220,937,794.54
06/30/1966	319,907,087,795.48
06/30/1965	317,273,898,983.64
06/30/1964	311,712,899,257.30
06/30/1963	305,859,632,996.41
06/30/1962	298,200,822,720.87
06/30/1961	288,970,938,610.05
06/30/1960	286,330,760,848.37
06/30/1959	284,705,907,078.22
06/30/1958	276,343,217,745.81
06/30/1957	270,527,171,896.43
06/30/1956	272,750,813,649.32
06/30/1955	274,374,222,802.62
06/30/1954	271,259,599,108.46
06/30/1953	266,071,061,638.57
06/30/1952	259,105,178,785.43
06/29/1951	255,221,976,814.93
06/30/1950	257,357,352,351.04

06/30/1949	252,770,359,860.33
06/30/1948	252,292,246,512.99
06/30/1947	258,286,383,108.67
06/28/1946	269,422,099,173.26
06/30/1945	258,682,187,409.93
06/30/1944	201,003,387,221.13
06/30/1943	136,696,090,329.90
06/30/1942	72,422,445,116.22
06/30/1941	48,961,443,535.71
06/29/1940	42,967,531,037.68
06/30/1939	40,439,532,411.11
06/30/1938	37,164,740,315.45
06/30/1937	36,424,613,732.29
06/30/1936	33,778,543,493.73
06/29/1935	28,700,892,624.53
06/30/1934	27,053,141,414.48
06/30/1933	22,538,672,560.15
06/30/1932	19,487,002,444.13
06/30/1931	16,801,281,491.71
06/30/1930	16,185,309,831.43
06/29/1929	16,931,088,484.10
06/30/1928	17,604,293,201.43
06/30/1927	18,511,906,931.85
06/30/1926	19,643,216,315.19
06/30/1925	20,516,193,887.90
06/30/1924	21,250,812,989.49
06/30/1923	22,349,707,365.36
06/30/1922	22,963,381,708.31
06/30/1921	23,977,450,552.54
07/01/1920	25,952,456,406.16
07/01/1919	27,390,970,113.12
07/01/1918	14,592,161,414.00
07/01/1917	5,717,770,279.52
07/01/1916	3,609,244,262.16
07/01/1915	3,058,136,873.16
07/01/1914	2,912,499,269.16
07/01/1913	2,916,204,913.66
07/01/1912	2,868,373,874.16
07/01/1911	2,765,600,606.69
07/01/1910	2,652,665,838.04
07/01/1909	2,639,546,241.04
07/01/1908	2,626,806,271.54
07/01/1907	2,457,188,061.54
07/01/1906	2,337,161,839.04
07/01/1905	2,274,615,063.84
07/01/1904	2,264,003,585.14
07/01/1903	2,202,464,781.89
07/01/1902	2,158,610,445.89
07/01/1901	2,143,326,933.89
07/01/1900	2,136,961,091.67

07/01/1899	1,991,927,306.92
07/01/1898	1,796,531,995.90
07/01/1897	1,817,672,665.90
07/01/1896	1,769,840,323.40
07/01/1895	1,676,120,983.25
07/01/1894	1,632,253,636.68
07/01/1893	1,545,985,686.13
07/01/1892	1,588,464,144.63
07/01/1891	1,545,996,591.61
07/01/1890	1,552,140,204.73
07/01/1889	1,619,052,922.23
07/01/1888	1,692,858,984.58
07/01/1887	1,657,602,592.63
07/01/1886	1,775,063,013.78
07/01/1885	1,863,964,873.14
07/01/1884	1,830,528,923.57
07/01/1883	1,884,171,728.07
07/01/1882	1,918,312,994.03
07/01/1881	2,069,013,569.58
07/01/1880	2,120,415,370.63
07/01/1879	2,349,567,482.04
07/01/1878	2,256,205,892.53
07/01/1877	2,205,301,392.10
07/01/1876	2,180,395,067.15
07/01/1875	2,232,284,531.95
07/01/1874	2,251,690,468.43
07/01/1873	2,234,482,993.20
07/01/1872	2,253,251,328.78
07/01/1871	2,353,211,332.32
07/01/1870	2,480,672,427.81
07/01/1869	2,588,452,213.94
07/01/1868	2,611,687,851.19
07/01/1867	2,678,126,103.87
07/01/1866	2,773,236,173.69
07/01/1865	2,680,647,869.74
07/01/1864	1,815,784,370.57
07/01/1863	1,119,772,138.63
07/01/1862	524,176,412.13
07/01/1861	90,580,873.72
07/01/1860	64,842,287.88
07/01/1859	58,496,837.88
07/01/1858	44,911,881.03
07/01/1857	28,699,831.85
07/01/1856	31,972,537.90
07/01/1855	35,586,956.56
07/01/1854	42,242,222.42
07/01/1853	59,803,117.70
07/01/1852	66,199,341.71
07/01/1851	68,304,796.02
07/01/1850	63,452,773.55

07/01/1849	63,061,858.69
07/01/1848	47,044,862.23
07/01/1847	38,826,534.77
07/01/1846	15,550,202.97
07/01/1845	15,925,303.01
07/01/1844	23,461,652.50
07/01/1843	32,742,922.00
01/01/1843	20,201,226.27
01/01/1842	13,594,480.73
01/01/1841	5,250,875.54
01/01/1840	3,573,343.82
01/01/1839	10,434,221.14
01/01/1838	3,308,124.07
01/01/1837	336,957.83
01/01/1836	37,513.05
01/01/1835	33,733.05
01/01/1834	4,760,082.08
01/01/1833	7,001,698.83
01/01/1832	24,322,235.18
01/01/1831	39,123,191.68
01/01/1830	48,565,406.50
01/01/1829	58,421,413.67
01/01/1828	67,475,043.87
01/01/1827	73,987,357.20
01/01/1826	81,054,059.99
01/01/1825	83,788,432.71
01/01/1824	90,269,777.77
01/01/1823	90,875,877.28
01/01/1822	93,546,676.98
01/01/1821	89,987,427.66
01/01/1820	91,015,566.15
01/01/1819	95,529,648.28
01/01/1818	103,466,633.83
01/01/1817	123,491,965.16
01/01/1816	127,334,933.74
01/01/1815	99,833,660.15
01/01/1814	81,487,846.24
01/01/1813	55,962,827.57
01/01/1812	45,209,737.90
01/01/1811	48,005,587.76
01/01/1810	53,173,217.52
01/01/1809	57,023,192.09
01/01/1808	65,196,317.97
01/01/1807	69,218,398.64
01/01/1806	75,723,270.66
01/01/1805	82,312,150.50
01/01/1804	86,427,120.88
01/01/1803	77,054,686.40
01/01/1802	80,712,632.25
01/01/1801	83,038,050.80
01/01/1800	82,976,294.35
01/01/1799	78,408,669.77
01/01/1798	79,228,529.12
01/01/1797	82,064,479.33
01/01/1796	83,762,172.07
01/01/1795	80,747,587.39
01/01/1794	78,427,404.77
01/01/1793	80,358,634.04
01/01/1792	77,227,924.66
01/01/1791	75,463,476.52

Calif. deficit deal likely just a temporary fix

From AP:

California's deal to close its $26 billion budget gap may end up doing what Gov. Arnold Schwarzenegger had hoped to avoid: kicking the state's problems down the road.

Despite deep cuts to education and social programs, the deal struck late Monday is filled with assumptions and accounting gimmicks. Combined with a persistent recession, it is likely to lead to yet another multibillion-dollar deficit in the next fiscal year.

"Frankly, we may not be done yet," said Senate leader Darrell Steinberg, D-Sacramento. "We pray for better economic news sooner rather than later."

Is Social Security a Giant Ponzi Scheme?

From Fool.com

Jim Cramer has called Social Security the largest Ponzi scheme in history. To an extent, he's making a valid comparison. Like a Ponzi scheme, Social Security pays its benefits out of new contributions, rather than out of investment returns. Also, like a Ponzi scheme, Social Security is in the process of collapsing under its own weight. According to its most recent annual report, the Social Security trust fund is expected to be exhausted by 2037. With similarities like that, it's no wonder Cramer felt he could make the comparison.

White House putting off release of budget update

From AP:

The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.

The release of the update — usually scheduled for mid-July — has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.

What happened to the transparency promised during the campaign?

What a $1 Trillion Deficit Means to You

From Foxnews.com

You know what? The bottom line is, unfortunately, it means that every single tax that you could imagine you will see a hike in. I hate to tell you, but to be the bearer of bad news this evening, but the likelihood is in order to fund a federal budget deficit that is now north of a trillion dollars, some project could hit $2 trillion in this fiscal year alone, you're going to see taxes go up across the board -- soda, tobacco.

Now, this president, this administration, could suggest that they will not raise taxes on the middle class. The bottom line is, Greta, 44 states are facing $165 billion in state deficits. They will raise taxes, whether we like it or not. And if you do health care and climate change, as well, you're going to see it across the board.