Posted on 10/08/2009 6:10:39 PM PDT by Steelfish
US Deficit 'Hits Record $1.4Tn'
The US budget deficit hit a record $1.4 trillion (£877bn) in the year to 30 September, US Congress estimates say.
Analysts had predicted a $1.6tn deficit but revised the estimate, which comes after the end of the US financial year.
The deficit was equal to 9.9% of gross domestic product (GDP) - more than treble the 2008 level and the highest since the end of World War II.
The surging deficit was put down to increased government spending and a big drop in tax revenues.
The Treasury Department will report the actual deficit later this month.
The previous record deficit was $459bn, set last year.
'Alarm bells'
The CBO said the increased spending was due in large part to the government's Troubled Asset Relief Program for financial firms, the $787bn economic stimulus, and the rescue of mortgage giants Fannie Mae and Freddie Mac.
Unemployment benefit payouts have surged as jobless figures have climbed, but observers say the full impact of stimulus spending is yet to feed through. Much of the planned construction work which formed part of the kick-start package has not yet begun.
(Excerpt) Read more at news.bbc.co.uk ...
Woot!!! The grandkids are going to loves us!!!
As any Democrat — they’ll be glad to tell you that the tripling of the deficit this year is all Bush’s fault.
Add on Freddie Mac, Fannie Mae, FHA, Social Security, Medicare, Medicaid. What else have I missed - oh yes - interest on the DEBT.
This is the end...my friend...sweet beautiful end...the end.
So should I pay more money on my house in case the $$$ are worthless soon, or should I hold on to them in case of an emergency? It’s not as if I could pay the house off, it would be within $10,000.
What’s the difference? Neither the house nor the cash will be worth much in another year. Buy any repairs or upgrades you may need in the next 5 years.
IOW, spend it all on planning ahead as best I can.
I wouldn’t spend ALL of it. I personally am keeping a little slush fund in a cigar box just in case. One fat roll of twenties and one medium roll of hundreds.
If things turn ugly you gotta expect there to be shortages of certain items and their prices to get crazy. Building materials, car parts(tires brakes etc), food, clothing, and durable goods like a furnace and refrigerator will likely be things that get very pricey if bought new. Also fuel, ammo, and alcohol.
If my house is worthless at least the Chinese won’t want it, right?
Orchestrated effort by our own to kill America. Hope we all remember who is responsible, if and when we manage to find the light. PROSICUTE TO THE FULLEST EXTENT OF THE LAW, TRAITORS!
What do you care? If you don’t want to sell, they can’t buy it. But if you can’t afford the taxes after the crooks in government jack them up to the sky, you’d better hope someone wants to buy when you are forced to sell.
In a deep recession and tax revenue will be light. Obama keeps piling on the debt with no end insight. I understand its cheap debt but how do you pay it back when interest rate eventually go up. Most all revenue will be needed just to pay interest.
If your house was worth a dime, and I had a dollar .. then I'd be happy to pay you for it. And I'm sure the Chinese would as well.
...and the band played on...
Good point.
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