Their debt, our problem too

Barack Obama presented his draft 2011 budget this week and sent many Americans into shock. The depth of the deficit crisis is starting to sink in. In his first budget outlook a year ago, Obama projected 2011 revenue of $2.71 trillion and spending of $3.63 trillion. Now, he expects 2011 revenue of $2.57 trillion and spending of $3.83 trillion. Although Obama has "never been more hopeful about America's future," and although the "worst of the storm has passed," he has increased his own projection for the 2011 deficit by 39% in one year, to $1.27 trillion. For every $1 the U.S. government raises in revenue next year, another 50 cents will be borrowed. That is, if creditors continue to trust in Uncle Sam. At this rate, the question is how much longer the trust can continue. Czech politicians should start thinking about ways to protect their constituents when the U.S. debt comes tumbling down. [Czech Republic State of the Union address]