Bloomberg reports:
The U.S. budget deficit widened in October from a year earlier, reaching a record for that month, as rising unemployment cut revenue at the start of the first full fiscal year under President Barack Obama.
The excess of spending over revenue widened to $176.4 billion last month, compared with a deficit of $155.5 billion in the same month a year earlier, the Treasury Department announced today in Washington in its monthly budget statement. It was a record 13th consecutive shortfall and the fifth-largest monthly gap on record, the department said.
The issue may be that outlays are reduced (non-stimulating) and the deficit still grows due to the collapse in revenues. That my friends, would be a lose-lose for the economy.
Source: Treasury
It should get worse more slowly very soon so I would not worry too much.
ReplyDeleteJake,
ReplyDeleteOur debt should break the $12 trillion barrier any day now!
Woohoo! I'd be worried if I didn't have a firm grasp of the debt is wealth CONcept.
Anyway. The critical thing is that we preserve the value of trillions in fraudulent credit issued by venal, bonus seeking bankers.
We must, at any cost, keep house prices and other asset prices high or else standards of living will fall. Affordable housing and lower consumer prices are what depressions are made of. ;)
Regards,
AS
In no way should houses ever again be an affordable multiple of income....these are prime first world houses with indoor plumbing and other modern features, and you're all third world wage wankers now...time to start up the Mud Hut Improvement show with Bob Novilla.
ReplyDeleteWow... I have an optimistic bunch of readers!
ReplyDeleteJake,
ReplyDeleteas a scientist I can tell you the glass is not half empty nor half full but the volume of the glass is 1/2 actualized.
Look at the real data and optimism is more a cult line of thought.
I would add the end of the world is not at hand for that kind of cult following either.
The chart shows that spending is UP (bigtime!) which should come as no surprise given the massive stimulus the govt has implemented.
ReplyDeleteThe "outlays" red line shows that govt spending was less than 1 trillion back in 1981 and is now close to 4 trillion with the last few years seeing the largest increase!