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 ...
Uh, we have had a weaker dollar for the last decade and huge trade deficits. If fact the dollar has lost a tremendous amount over the last decade to other currencies and our “trade” deficit has exploded. Are you delusional?
Prove it. Not with your feelings, just prove it.
Japan has trade surpluses based on their currency valuation. Just like China keep the Yuan pegged to the dollar. Also Japan has been esentially in a recession almost all of the last decade
How much?
When we ship our dollars over for a product that is worth substantially less than that dollar is worth
Why would we pay $1 for something worth substantially less than $1? Did you ever take an economics class?
We should not trade with countries that enslave their citizens. That is not “Free” trade. I think you would have to call it “Slave” trade.
"It may be a strong or a week correlation" is no correlation, and certainly not a "link."
Apart from the other stuff, I’m sensing some serious confusion between “nominal” and “real.”
Why would you pay 40 dollars for a plastic toy that is esentially worth 80 cents from China? Happens every day here in America. Why does the government pay 800 dollars for a toilet seat? Check out the SPR for amounts being bought for oil
Yeah, twice in the last 23 years. LOL!
Oh, never mind, I thought you were arguing the dollar has been flat (and weak).
thats like saying it the hamburger might taste good or bad but it still tastes like something. Your argument is it tastes like nothing..Riiight.
OMG! STFU!
I'm sorry I wasted your time by posting facts and using logic. Both wasted on you.
Help me out here. Someone willfully pays $40 for a $0.80 product but you know how much it is worth and he or she does not?
funny, seems that chart shows exactly what I just said. going down over the last decade. I guess I should have flipped it over for you so it shows it was going up.
You have good arguments too. Why are you wasting your time on me. Did I tell you to STFU?
Makes no difference to me. I thought that you said the dollar was weak over the past decade.
Japan has had large trade surpluses for decades. We have had (mostly) trade deficits for decades. Both countries have federal deficits.
Yeah, now I see the link. ROFLMAO!
It has been going steadily down over the past decade while our deficits increase, both federal and trade
And you're talking out of your ass.
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