1. U.S. Deficit.

The era of federal budget surpluses is now a thing of the past. According to the Congressional Budget Office our deficit for the current fiscal year rose from $459 billion at the end of 2008 to $1.4 trillion for the end of 2009. The cost of the Wall Street and bank bailouts along with our constant financial support of wars raging in third world countries has pushed the U.S. deeply into the red. The result of these actions is that global investors are starting to demand higher interest rates to offset the perceived risk/reward associated with the U.S. credit markets. This will eventually raise borrowing costs for both US based consumers and businesses.

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