The U.S. Posts Its 22nd Deficit Month In a Row
Dig dig dig that hole and don't stop digging or we'll never be able to get out!!
The U.S. government spent itself deeper into the red last month, paying nearly $20 billion in interest on debt and an additional $9.8 billion to help unemployed Americans.
Federal spending eclipsed revenue for the 22nd straight time, the Treasury Department said Wednesday. The $165.04 billion deficit, while a bit smaller than the $169.5 billion shortfall expected by economists polled by Dow Jones Newswires, was the second highest for the month on record. The highest was $180.68 billion in July 2009.
The government usually runs a deficit during July, which is the 10th month of the fiscal year. So far in fiscal 2010, the government spent $1.169 trillion more than it made. That figure is about $98 billion lower than during the comparable period a year earlier.
For all of fiscal 2009, the U.S. ran a record $1.42 trillion deficit. Fiscal 2010 might run a little higher—the Obama administration sees $1.47 trillion.
I wonder how much of that $20 billion in interest payments went to our friends at the Federal Reserve in exchange for the money they are so kind to print on our behalf?
See also my comments February of 2009 via OMGObama: Magician of a Shrunken Deficit:
Now I'm no mathlete or anything but something doesn't quite work out correctly in regards to President Obama's pledge to slice the deficit in half by the end of his term. Call me crazy but unless the government plans to get into the illegal street drug business to cover all the promises he's made in just little over a month in office, we're going to have a serious cash issue when all is said and done.
OMGObama has, to date, pledged countless trillions of dollars to stem systemic bank failure, frozen credit, universal health care deficiencies, massive mortgage fallout, and is in the process of sending 17,000 more troops to Afghanistan. So I ask you, Mr. Obama, how exactly do you propose to shrink the deficit in 3 3/4 short years with debut spending like that? Let me guess. It starts with taxes.
Ooooh! I get the math now! Mr. Obama announced that he would cut the deficit in half by the end of his term. As confuzzled as I was as to the details and how exactly he would achieve this goal with his "Debt We Can Believe In" program, I get it. He will halve the deficit by inflating it to comical proportions first. Except there's nothing funny about the U.S. trying to dig itself out of a debt hole by producing more debt.
Good luck with that plan, sir, I shall be in Canada shooting beavers for dinner and warm pelts.
Can someone please find OMGObama a real economist?
Apparently no one got my message.