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 ...
Well, at the rate we are going some could say the same of us someday....
No?
He must work for the government.
Japan has certainly NOT had large trade surpluses for “decades”. And we have not had trade deficits for “decades” Both countries have federal deficits because we both have weak currencies and products that are worth less than those currencies.
because I dont agree with you? You are right is saying that trade and federal deficits are different. You are right in saying they are not always in lock step. My original argument was that they are in fact correlated.
If anything, the correlation is between a trade deficit decrease and an economic slowdown.
You have a link to back up your theory?
And we have not had trade deficits for “decades”
When were our last 5 trade surpluses?
Because you keep posting things that are wrong. The opposite of right.
You are right is saying that trade and federal deficits are different.
Excellent!
You are right in saying they are not always in lock step.
Great!
My original argument was that they are in fact correlated.
What's the correlation? How many dollars of trade deficits translates into how many dollars of federal deficit? How can some countries have a trade deficit and a federal deficit while others have a trade surplus and still have a federal deficit?
Man, you guys are a tag-team. Im trying to keep up here. Give me a break.
Im going to just reply to All. I cant keep up with both of you at the same time while posting. I have to admit, you guys are good.
Try posting facts instead of feelings. That should help.
I’ll back off. I should warn you that the reason I posted my first response on this thread is because I was tweaking some other FReepers who confuse budget and trade deficits.
I guess I fail.
Try 2 decades. Still—you said trade deficits = budget deficits. That really isn’t true. Spending beyond tax intakes = budget deficits.
what do you and the toddster think about free-trade?
What do you feel about free trade?
I think its garbage
It's only money.
Ours.
If you ever find some facts you'd like to discuss, be sure to give me a ping.
I was just on freetrade.org
“How is it we are wasting money on American companies?”
Bail-out!
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