Skip to comments.Federal Deficit on Pace to Reach Record $1T
Posted on 12/10/2008 6:45:34 PM PST by marshmallow
Gov't reports largest imbalance ever in Nov., annual deficit could reach record $1 trillion
WASHINGTON (AP) -- The federal government ran a record budget deficit in November, putting Uncle Sam on track to post an all-time high annual shortfall of $1 trillion or more.
In just the first two months of the budget year that started Oct. 1, the deficit totaled $401.6 billion, nearly matching the record gap of $455 billion posted for all of last year, according to Treasury Department data released Wednesday. If the deficit does top $1 trillion for the current budget year, it also would be a post-World War II high when measured as a percentage of the economy.
The increased red ink stems from both lower tax revenue and increased spending that is a result of the recessionary economy. The government is receiving less in business and personal income taxes while spending more on programs such as unemployment insurance and food stamps.
Elsewhere, emergency aid for the nation's imperiled auto industry was thrown into jeopardy Wednesday as some Republicans revolted against a hard-fought deal between Democrats and the Bush White House to speed $14 billion to the ailing carmakers.
Then there's the $700 billion bank rescue program. The Treasury report showed that the government spent $76.5 billion from the program in November and $191.5 billion over the past two months.
A congressional oversight panel on Wednesday questioned whether Treasury is following a clear strategy in its use of those funds. The panel, which includes academic and labor representatives, also asked in a report whether the rescue effort has helped any homeowners avoid foreclosure.
(Excerpt) Read more at biz.yahoo.com ...
Here’s another thread where we should ask whether the limitation of our purchases of foreign goods can help.
What if we had laws that said you had to balance the budget?
What if we had kept spending at 2000 levels and increased only at the level of inflation?
What if we had PAYGO in place when Jorge Arbusto decided he wanted to buy off seniors or go fight a war in Iraq?
What if we hadn’t gotten rid of the rules that said debt levels were limited at 12:1 ratios instead of letting the banks and financial houses keep borrowing and lending without a care?
Deficits dont matter. Its not like they add to the National Debt or anything./s
Trade wars are to no one’s benefit. However, shopping locally when and where possible is a good thing. China is going into tailspin because we are not importing like we used to.
$1 trillion in one year. I’m at a loss for words.
Obama, you want to give us real change from Bush? Balance the budget. Yes, we can balance the budget without cutting defense or raising taxes. Yes, we can!
“China is going into tailspin because we are not importing like we used to.”
yeah because our economy sux
Guess we should be grateful for giving our money away for toxic products./s
No argument there. But that has nothing to do with the fact that our government spends more money than it takes in.
It absolutely follows. Thanks for denying
Oh really? Please explain.
The libs sure LOVE their CORPORATE WELFARE all of a sudden ...don’t they?
Where do you think the federal deficit comes from? Define the federal deficit for us. You think its a simple matter of spending more than we take in, tax wise. How is it that we have a “trade deficit” with countries like China, but not Saudia Arabia?
Hey, there is a danger when the pusher gets his customer hooked on the junk. At some point the junkie gets clean or winds up dead.
You can’t be serious. You think we have a trade surplus with Saudi Arabia?
What if our government weren’t able to monetize debt, and therefore had to go asking for loans? Would anyone give them the time of day?
What if there was no national currency to mess around with?
What if gumdrops rained from the sky?
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