By George P. Shultz, Michael J. Boskin, John F. Cogan, Allan H.
Meltzer and John B. Taylor Sometimes a few facts tell important
stories. The American economy now is full of facts that tell
stories that you really don't want, but need, to hear. Where are
we now? Did you know that annual spending by the federal
government now exceeds the 2007 level by about $1 trillion? With
a slow economy, revenues are little changed. The result is an
unprecedented string of federal budget deficits, $1.4 trillion
in 2009, $1.3 trillion in 2010, $1.3 trillion in 2011, and
another $1.2 trillion on the way this year. The four-year
increase in borrowing amounts to $55,000 per U.S. household. The
amount of debt is one thing. The burden of interest payments is
another. The Treasury now has a preponderance of its debt issued
in very short-term durations, to take advantage of low short-
term interest rates. It must frequently refinance this debt
which, when added to the current deficit, means Treasury must
raise $4 trillion this year a