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| Topic: Budget deficit tops $1 trillion for first time | |
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By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 11 mins ago
WASHINGTON — The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar. The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor. The soaring deficit is making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could also force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term. "These are mind-boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run." The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to $1.09 trillion. The administration forecasts that the deficit for the entire year will hit $1.84 trillion in October. Government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent. Congress already approved a $700 billion financial bailout for banks, automakers and other sectors, and a $787 billion economic stimulus package to try to jump-start a recovery. Outlays through the first nine months of this budget year total $2.67 trillion, up 20.5 percent from the same period a year ago. There is growing talk among some Obama administration officials that a second round of stimulus may eventually be necessary. That has many Republicans and deficit hawks worried that the U.S. could be setting itself up for more financial pain down the road if interest rates and inflation surge. They also are raising alarms about additional spending the administration is proposing, including its plan to reform health care. President Barack Obama and Treasury Secretary Timothy Geithner have said the U.S. is committed to bringing down the deficits once the economy and financial sector recover. The Obama administration has set a goal of cutting the deficit in half by the end of his first term in office. In the meantime, the U.S. debt now stands at $11.5 trillion. Interest payments on the debt cost $452 billion last year — the largest federal spending category after Medicare-Medicaid, Social Security and defense. The overall debt is now slightly more than 80 percent of the annual output of the entire U.S. economy, as measured by the gross domestic product. During World War II, it briefly rose to 120 percent of GDP. The debt is largely financed by the sale of Treasury bonds and bills. Many private economists say the administration had no choice but to take aggressive action during the financial crisis. "We have a deep recession hammering tax revenues and forcing the government to provide a lot of help to the economy," said Mark Zandi, chief economist at Moody's Economy.com. "But without this help, the downturn would be even more severe." History shows the dangers of assuming too soon that economic downturns have ended. President Franklin D. Roosevelt made that mistake in 1936. Believing the Depression largely over, he sought to reduce public spending and to balance the federal budget, but that undermined a fragile recovery, pushing the economy back under water in 1937. Japanese leaders made a similar mistake in the 1990s when they temporarily withdrew government stimulus spending, prolonging Japan's recession into one that lasted a full decade. Republicans in Congress are seizing on the deficit — and the persistence of the recession — to attack Democrats. "Washington Democrats keep borrowing and spending money we don't have," said House Republican Leader John Boehner of Ohio. So far, interest rates have remained low. This is partly because the Federal Reserve has kept a key short-term rate at a record near zero. Also, all the economic troubles in housing and the rest of the economy have depressed demand for credit by the private sector, meaning the government's borrowing costs are relatively low. The benchmark 10-year Treasury security has risen by about a percentage point in recent weeks, but analysts note it is still trading at historically low levels of around 3.35 percent. Geithner travels later this week to Saudi Arabia and the United Arab Emirates, where he is expected to face questions about the U.S. deficit. As he did during a visit to China last month, Geithner will try to reassure investors in the Middle East that their U.S. holdings are safe from a calamitous bout of inflation. The deficit of $1.09 trillion so far this year compares to an imbalance of $285.85 billion through the same period a year ago. The deficit for the 2008 budget year, which ended Sept. 30, was $454.8 billion, the current record in dollar terms. Revenues so far this year total $1.59 trillion, down 17.9 percent from a year ago, reflecting higher unemployment, which cuts into payroll taxes and corporate tax receipts. Under the administration's budget estimates, the $1.84 trillion deficit for this year will be followed by a $1.26 trillion deficit in 2010, and will never dip below $500 billion over the next decade. The administration estimates the deficits will total $7.1 trillion from 2010 to 2019. ******************************************************************** do you know how many smokes that will buy???? 
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Just one thing ole BHO will be remembered for in History.
He owns it and wants to add to the deficit. |
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By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 11 mins ago WASHINGTON — The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar. The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor. The soaring deficit is making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could also force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term. "These are mind-boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run." The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to $1.09 trillion. The administration forecasts that the deficit for the entire year will hit $1.84 trillion in October. Government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent. Congress already approved a $700 billion financial bailout for banks, automakers and other sectors, and a $787 billion economic stimulus package to try to jump-start a recovery. Outlays through the first nine months of this budget year total $2.67 trillion, up 20.5 percent from the same period a year ago. There is growing talk among some Obama administration officials that a second round of stimulus may eventually be necessary. That has many Republicans and deficit hawks worried that the U.S. could be setting itself up for more financial pain down the road if interest rates and inflation surge. They also are raising alarms about additional spending the administration is proposing, including its plan to reform health care. President Barack Obama and Treasury Secretary Timothy Geithner have said the U.S. is committed to bringing down the deficits once the economy and financial sector recover. The Obama administration has set a goal of cutting the deficit in half by the end of his first term in office. In the meantime, the U.S. debt now stands at $11.5 trillion. Interest payments on the debt cost $452 billion last year — the largest federal spending category after Medicare-Medicaid, Social Security and defense. The overall debt is now slightly more than 80 percent of the annual output of the entire U.S. economy, as measured by the gross domestic product. During World War II, it briefly rose to 120 percent of GDP. The debt is largely financed by the sale of Treasury bonds and bills. Many private economists say the administration had no choice but to take aggressive action during the financial crisis. "We have a deep recession hammering tax revenues and forcing the government to provide a lot of help to the economy," said Mark Zandi, chief economist at Moody's Economy.com. "But without this help, the downturn would be even more severe." History shows the dangers of assuming too soon that economic downturns have ended. President Franklin D. Roosevelt made that mistake in 1936. Believing the Depression largely over, he sought to reduce public spending and to balance the federal budget, but that undermined a fragile recovery, pushing the economy back under water in 1937. Japanese leaders made a similar mistake in the 1990s when they temporarily withdrew government stimulus spending, prolonging Japan's recession into one that lasted a full decade. Republicans in Congress are seizing on the deficit — and the persistence of the recession — to attack Democrats. "Washington Democrats keep borrowing and spending money we don't have," said House Republican Leader John Boehner of Ohio. So far, interest rates have remained low. This is partly because the Federal Reserve has kept a key short-term rate at a record near zero. Also, all the economic troubles in housing and the rest of the economy have depressed demand for credit by the private sector, meaning the government's borrowing costs are relatively low. The benchmark 10-year Treasury security has risen by about a percentage point in recent weeks, but analysts note it is still trading at historically low levels of around 3.35 percent. Geithner travels later this week to Saudi Arabia and the United Arab Emirates, where he is expected to face questions about the U.S. deficit. As he did during a visit to China last month, Geithner will try to reassure investors in the Middle East that their U.S. holdings are safe from a calamitous bout of inflation. The deficit of $1.09 trillion so far this year compares to an imbalance of $285.85 billion through the same period a year ago. The deficit for the 2008 budget year, which ended Sept. 30, was $454.8 billion, the current record in dollar terms. Revenues so far this year total $1.59 trillion, down 17.9 percent from a year ago, reflecting higher unemployment, which cuts into payroll taxes and corporate tax receipts. Under the administration's budget estimates, the $1.84 trillion deficit for this year will be followed by a $1.26 trillion deficit in 2010, and will never dip below $500 billion over the next decade. The administration estimates the deficits will total $7.1 trillion from 2010 to 2019. ******************************************************************** do you know how many smokes that will buy????
2 or 3 cartons in Kentucky. Or alot of our cash crop. 
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I find it ironic that republicans found their voice on the defecit after the dems took over. I hope they can pull themselves together and understand Obamas spending is an attempt to fix the disaster that was the Bush years. I wonder what kind of shape we would be in if we would have done nothing? Would all the banks have failed? would we have food riots?
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I find it ironic that republicans found their voice on the defecit after the dems took over. I hope they can pull themselves together and understand Obamas spending is an attempt to fix the disaster that was the Bush years. I wonder what kind of shape we would be in if we would have done nothing? Would all the banks have failed? would we have food riots? Your right. Yes there would be some financial institutions that would have failed. The world trade centers collapsed. The question that I have is when do we start taking care of our own. We spend way too much money trying to take care of the world. It is a losing battle. My 2 cents |
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We have people living in this country, from every part of the world. Taking care of others in other countries is taking care of our own.
When people say take care of our own I don't think we realize we are not just one nationality in the US. There for the US represents all countries. Jmo |
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I find it ironic that republicans found their voice on the defecit after the dems took over. I hope they can pull themselves together and understand Obamas spending is an attempt to fix the disaster that was the Bush years. I wonder what kind of shape we would be in if we would have done nothing? Would all the banks have failed? would we have food riots? This is unfair. Many Republicans sounded off about the deficts long before any of this current posturing. And to be honest many Democrats are facing the truth of it... Some of them are going to unlink from the machine. Not all our politicians are snakes... Just hard to find the good ones in the cesspool. |
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Seriously..with Clinton...Budget surplus... (b*tch all you want...the guy only lied about getting a BJ from a fat chick)
Then the 8 year long frat party where no one cleaned up the mess.. everything is in shambles..the toilet is over flowing...and it has all gone to sh** but, no one wants to pay for the pizzas that finally showed up the next day... so we blame the new manager after the last one FINALLY got booted? I expect better than that from intelligent adults. ...I want to think of you kids as being intelligent and rational. Don't prove me wrong guys |
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Federal Deficit Falling as Economy Climbs
Tax cuts led to revenue increase Budget & Tax News > August 2006 Budget Budget > Deficits Email a Friend Written By: Steve Stanek Published In: Budget & Tax News > August 2006 Publication date: 08/01/2006 Publisher: The Heartland Institute Surging tax receipts have caused the federal budget deficit to drop more than 16 percent over the past year, in a period of tax rate cuts and high levels of government spending, according to reports released in June by the Congressional Budget Office (CBO) and Treasury Department. Tax revenues were up nearly 13 percent, about $176 billion more than last year's total, according to the Treasury Department. The Congressional Budget Office, using slightly different measures, reported tax receipts in the first eight months of the year were up 12.8 percent, the second-fastest growth in nearly 25 years. Only last year's 15.5 percent growth was greater. http://www.heartland.org/policybot/results/19404/Federal_Deficit_Falling_as_Economy_Climbs.html ============================================================= Publication date: 08/01/2006 the second-fastest growth in nearly 25 years. Only last year's 15.5 percent growth was greater. |
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Edited by
adj4u
on
Tue 07/14/09 06:26 AM
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CBO: US deficit ballooning to record $1.7 trillion
The US budget deficit is turning a deeper shade of red. On Friday, the Congressional Budget Office (CBO) said this year’s budget deficit is now nearly $1.7 trillion, more than $400 billion larger than it forecast two months ago. Next year’s deficit will be nearly $1.1 trillion, $430 billion more than its prior forecast. And that doesn’t count President Obama’s budget plans to cut taxes and increase spending. Although the deepening recession is partly to blame for the increase, the nonpartisan CBO says the increases are largely due to the sharp rise in spending (think fiscal stimulus package) and the higher cost of saving the financial system. http://features.csmonitor.com/economyrebuild/2009/03/20/cbo-us-deficit-ballooning-to-record-19-trillion/ ==================================================================== for those that have not figured it out yet they are destroying the u s dollar to help make way for a world wide currency thus reducing the power and destroying the sovereignty of the u s if one does not control their economy they are at the mercy of those that do if you disagree lets put it on a smaller scale: who do you know that had a "good" job their economy was based on their employer their employer gets less business and your friend loses their "good" job how is your friends economy holding up just a thought but hey what do i know |
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He said that it was going to get worse before it gets better.
Common sense says the same thing too. |
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Sign of the Times: National Debt Clock Runs Out of Digits By topeditor The clock has run out on the national debt. The National Debt Clock. (Associated Press) 
The national debt clock, the unofficial tracker of the federal deficit maintained by the Durst Organization in New York, has reached its limits. Last month, as the national debt exceeded $10 trillion for the first time, the clock ran out of digits to record the number. The dollar sign in the clock had to be deleted and replaced with a one to record the massive number. The clock’s owners say a new model — with space for two extra digits — will be in place early next year. Now the debt clock will be able to reach the quadrillions. Hopefully, that’s not a level that will be breached any time soon. –Phil Izzo http://blogs.wsj.com/economics/2008/10/09/sign-of-the-times-2/ |
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Edited by
Unknow
on
Tue 07/14/09 07:12 AM
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Seriously..with Clinton...Budget surplus... (b*tch all you want...the guy only lied about getting a BJ from a fat chick) Then the 8 year long frat party where no one cleaned up the mess.. everything is in shambles..the toilet is over flowing...and it has all gone to sh** but, no one wants to pay for the pizzas that finally showed up the next day... so we blame the new manager after the last one FINALLY got booted? I expect better than that from intelligent adults. ...I want to think of you kids as being intelligent and rational. Don't prove me wrong guys There is NO 2 parties just one big corrupt one!!!!! |
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well it is the ""peoples"" fault for being self centered and to lazy to keep the reigns on the federal govt
this was orchestrated very well it is an on going plan since 1913 to control the financial markets of the world but then i am a paranoid over thinker so hey what do i know |
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Edited by
Unknow
on
Tue 07/14/09 07:57 AM
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well it is the ""peoples"" fault for being self centered and to lazy to keep the reigns on the federal govt this was orchestrated very well it is an on going plan since 1913 to control the financial markets of the world but then i am a paranoid over thinker so hey what do i know Hate to say it but we should just have let it crash...Way things are going its going to anyway!!!! |
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I find it ironic that republicans found their voice on the defecit after the dems took over. I hope they can pull themselves together and understand Obamas spending is an attempt to fix the disaster that was the Bush years. I wonder what kind of shape we would be in if we would have done nothing? Would all the banks have failed? would we have food riots? I personally find it funny when people that blamed Bush for his addition to the deficit, stating that it cause much of our financial mess, but when Obama increases it by just as much, it's to fix Bush's mess. Are we saying that the mess was caused BECAUSE Bush didn't spend enough money? This is illogical at best. Let it be known, that the lower the taxes on the people, the more improvement the economy shows. If anyone truely wanted out of this mess, it would involve tax cuts, not tax increases.... |
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adj4U and Temp, here is to you.
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I find it ironic that republicans found their voice on the defecit after the dems took over. I hope they can pull themselves together and understand Obamas spending is an attempt to fix the disaster that was the Bush years. I wonder what kind of shape we would be in if we would have done nothing? Would all the banks have failed? would we have food riots? I personally find it funny when people that blamed Bush for his addition to the deficit, stating that it cause much of our financial mess, but when Obama increases it by just as much, it's to fix Bush's mess. Are we saying that the mess was caused BECAUSE Bush didn't spend enough money? This is illogical at best. Let it be known, that the lower the taxes on the people, the more improvement the economy shows. If anyone truely wanted out of this mess, it would involve tax cuts, not tax increases.... Worse thans that... If it happened in this century or the last few years of the last century and it was 'bad'... Its Bushes fault... What poppyfeathers. If we are all focused on bush we won't see the crud comming out of our current government... I ain't that stupid... ARE YOU? |
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Edited by
Ladylid2012
on
Tue 07/14/09 12:01 PM
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One man or one administration isn't responsible. Although some of them do some dumb sh**. When the Federal Reserve System started in 1914 it
was a monarchy full of flaws, to say the least, and then small revisions from the Bank Act of 1935 contributed. The system was designed to fail, (us) amazing it has gone on this long. Were in for big changes and it's gonna get ugly.   
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One man or one administration isn't responsible. Although some of them do some dumb sh**. When the Federal Reserve System started in 1914 it was a monarchy full of flaws, to say the least, and then small revisions from the Bank Act of 1935 contributed. The system was was designed to fail, (us) amazing it has gone on this long. Were in for big changes and it's gonna get ugly.
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