Federal Government Borrowing $1.4 Trillion to Pay for Bailouts

It seemed pretty apparent that we’d have to either borrow the money or print the money out of thin air to pay for this string of bailouts. The AP is now reporting that we’ll be borrowing close to $1.4 TRILLION over the next few months.

The government, raising cash to pay for the array of financial rescue packages, said yesterday it plans to borrow $550 billion in the last three months of this year – and that’s just a down payment.

Treasury Department officials also projected the government would need to borrow $368 billion more in the first three months of 2009, meaning the next president will confront an ocean of red ink.

The nonpartisan Committee for a Responsible Budget estimates all the economic and rescue initiatives, starting with the $168 billion in stimulus checks issued earlier this year, total even more – an eye-popping $2.6 trillion.

In addition to the borrowing numbers, the Treasury released estimates by major Wall Street bond firms projecting that total borrowing for this budget year, which began Oct. 1, will total $1.4 trillion, nearly double the previous record.

I wonder how our next president will handle the upcoming “credit crisis” where other countries will refuse to continue financing our irresponsible spending habits? If we continue to spend as if we’re on a drunken spring break vacation, who in their right mind would lend us more money?