Economy tethers Bush budget

February 5, 2007
Economy tethers Bush budget

A business slowdown or recession, an increase in inflation and interest rates, a reversal in the
willingness of foreign investors to keep buying U.S. Treasury bonds could put the skids on what
has been a strong economy.

Meanwhile, spiraling payouts in guaranteed federal benefits for Social Security and Medicare as
baby boomers retire "is going to be the single largest economic problem that we face," said Mark
Zandi, chief economist for at Moody's Economy.com.

"Deficits look OK today," Zandi said. "But what happens at a time when the economy isn't
operating at full tilt?"

When Bush took office in 2001, the national debt was about $5.6 trillion. Now it stands
at about $8.6 trillion.