Thanks for the Hope and Change. Budget deficit sets record in February
Results 1 to 7 of 7

Thread: Thanks for the Hope and Change. Budget deficit sets record in February

  1. #1

    Exclamation Thanks for the Hope and Change. Budget deficit sets record in February

    The Associated Press: Budget deficit sets record in February

    Budget deficit sets record in February

    By MARTIN CRUTSINGER (AP) 4 hours ago

    WASHINGTON The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year's record for the full year.

    The Treasury Department said Wednesday that the February deficit totaled $220.9 billion, 14 percent higher than the previous record set in February of last year.

    The deficit through the first five months of this budget year totals $651.6 billion, 10.5 percent higher than a year ago.

    The Obama administration is projecting that the deficit for the 2010 budget year will hit an all-time high of $1.56 trillion, surpassing last year's $1.4 trillion total. The administration is forecasting that the deficit will remain above $1 trillion in 2011, giving the country thrree straight years of $1 trillion-plus deficits.

    The administration says the huge deficits are necessary to get the country out of the deepest recession since the 1930s. But Republicans have attacked the stimulus spending as wasteful and a failure at the primary objective of lowering unemployment.

    The administration defends the economic stimulus bill that Congress passed in February 2009 with a pricetag at the time of $787 billion as the right medicine to get the economy back on its feet. President Barack Obama has said even more is needed to battle an unemployment rate that remained stuck in February at 9.7 percent.

    The White House says that job creation will remain a top priority, hoping to convince voters that Obama did not spend too much time during his first year in office trying to get Congress to pass health care reform.

    The government's monthly budget report showed the record $220.9 billion deficit for February reflected outlays of $328.4 billion and revenues of $107.5 billion. The February receipts marked the first time that revenues are up compared with the same month a year ago since April 2008. Revenues had fallen for 21 straight months as the recession cut into both individual and corporate income tax payments.

    Deficits normally shoot up in February because it is a month when the government makes large refund payments to individuals and corporations as part of the tax filing process. Those payments were boosted this year by various tax credits that were expanded or added as part of the government's stimulus efforts including the "Making Work Pay" tax credit and the first-time home buyers tax credit.

    Through the first five months of the budget year, government revenues totaled $800.5 billion, down 7 percent from a year ago, while outlays totaled $1.45 trillion, up a slight 0.1 percent from a year ago.

    The deficit of $651.6 billion through February is up by 10.5 percent from the $589.8 billion deficit run up during the first five months of the 2009 budget year. The government's budget year begins on Oct. 1.

    The budget that Obama sent to Congress in February projects that the deficits over the next decade will total $8.53 trillion. But the Congressional Budget Office last week put the 10-year total even higher at $9.8 trillion. Part of the reason for the $1.2 trillion difference is that the CBO is projecting slower economic growth and thus less tax revenues than the administration over the next decade.

    The administration has maintained that the country must run large budget deficits until the economy has begun to grow at a sustainable pace that is bringing the unemployment rate down. Only then, the administration says, should the government focus on getting control of the deficits.

    Obama has created by executive order an 18-member fiscal reform commission that has been charged with coming up with a plan to shrink the deficit to 3 percent of the economy within five years. The plan is scheduled to be unveiled in December, after the midterm congressional elections.

    With the economy so weak, the interest rates that the government has to finance the flood of red ink have remained low. However, economists are worried that the favorable outlook on interest rates could change quickly if investors, including foreign investors, start to worry about the government's commitment to restraining future deficits. China is the largest foreign holder of U.S. Treasury securities.

    Through the first five months of this budget year, net interest payments totaled $86.5 billion, up 15.3 percent from a year ago.

    In its report last week, the CBO predicted that the government debt held by investors would climb from $7.5 trillion at the end of last year to $20.3 trillion in 2020. CBO forecast that interest payments would more than quadruple from a projected $209 billion this year to $916 billion annually by the end of the decade.

    Copyright 2010 The Associated Press. All rights reserved.
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  2.   
  3. #2
    Join Date
    Feb 2009
    Location
    Creswell, Oregon
    Posts
    3,865
    Funny how the media had a cow when Bush ran the deficit up and that wasn't any were near what it is now. Got to love the hope and change.
    "You can get a lot accomplished if you don't care who gets the credit" - Ronald Reagan

  4. #3
    I have to believe that Obama and his Administration are purposely trying to tank our economy...that is the ONLY explanation for this out-of-control, reckless spending. One only has to research Germany's pre-WWII history to discover why!

    My Fellow Patriots, remain vigilant, prepare for yourself and your family and remain faithful to God and our Constitutional Republic.
    Conservative Wife & Mom -- I'm a Conservative Christian-American with dual citizenship...the Kingdom of God is my 1st home and the U.S.A. is my 2nd.

  5. #4
    Join Date
    Jan 2010
    Location
    Nevada
    Posts
    9
    You just can't keep giving away free money to folks (no matter what the reason) and expect to balance any sort of budget. It seems to me that there is an ever increasing number of Americans who want something for nothing, and Liberals continue to buy votes by giving away my tax dollars I earned by...wait for it...working and investing in my own savings and insurance. Social Security will not exist for me as it just can't be sustained at the rate it is given away to those who do not pay into it. Yes friends, you have to save first then cover needs and only after this is done can you get what you WANT. During the Great Depression folks sold their belongings, moved to wherever they could find work, whatever it took to sustain themselves. Nowadays more and more Americans look to (our new Socialist) government to save them vice saving themselves. Sad really.

  6. #5
    Quote Originally Posted by Conservative Wife & Mom View Post
    I have to believe that Obama and his Administration are purposely trying to tank our economy...that is the ONLY explanation for this out-of-control, reckless spending. One only has to research Germany's pre-WWII history to discover why!

    My Fellow Patriots, remain vigilant, prepare for yourself and your family and remain faithful to God and our Constitutional Republic.

    CW&M I think you are right. He knows exactly what he is doing. He is doing his masters bidding. Cause a crisis and answer the crisis with the predetermined solution.
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  7. #6
    Quote Originally Posted by Conservative Wife & Mom View Post
    I have to believe that Obama and his Administration are purposely trying to tank our economy...that is the ONLY explanation for this out-of-control, reckless spending. One only has to research Germany's pre-WWII history to discover why!

    My Fellow Patriots, remain vigilant, prepare for yourself and your family and remain faithful to God and our Constitutional Republic.
    I have to believe that you are right. it is so obvious that these thugs do not even care to listen to we the people. they have their agenda and that is to change america as we know it. good thing is that they have a lot of freedom lovers to get passed first...
    You can have my freedom as soon as I'm done with it!!!

  8. #7
    Join Date
    Feb 2009
    Location
    Creswell, Oregon
    Posts
    3,865
    Unfortunatly us freedom lovers can't do much till November. We can't count on any help from the media. All we have is the tea parties and conservitive talk shows to keep the pressure on till then. But Washington is not listening. Even as I right this the Poloci bunch is behind closed doors twisting arms and the media is nowhere to be heard. If this was Bush and the Republicans doing this the media would be livid.
    "You can get a lot accomplished if you don't care who gets the credit" - Ronald Reagan

Similar Threads

  1. Replies: 0
    Last Post: 11-04-2009, 08:20 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Quantcast