February sets all time record for deficit in one month.

Iriemon · 03-18-08, 05:53 PM

The deficit for February grew by a whopping $174 billion, according to preliminary estimates by the CBO. Through the 5 months ending February, the deficit for the year is $262 billion, $100 billion more than it was at this time last year.

http://cbo.gov/ftpdocs/90xx/doc9023/03-2008-MBR.htm

CBO deficits are "total deficits" which include SS surplus tax payments as general revenues.

The previous record month was $120B, set in February 2007.

U.S. budget deficit hits record US$176-billion

For the fiscal years starting October 1, through the end of February, total US debt has increased by $350 billion in just 5 months. That is $80 billion more than the increase for the same time frame for FY2007.

9/30/07 9,007,653,372,262.48
2/29/08 9,358,051,423,747.64

9/30/06 8,506,973,899,215.23
2/29/07 8,778,110,896,597.94

Government - Debt to the Penny (Daily History Search Application)

And I don't believe these figures include the $150 billion giveaway the government has set up for this election year, which will crank these numbers up.

Those who have been here for a little while might remember posts by Stinger and others arguing if we just stayed the course, the deficits would go away.

And President Bush, promising first that he'd pay down the debt by $2 trillion, and then more recently that he'd halve the deficits from an artificial figure. Another broken promise.

Voodoo economics has not worked. Tax cuts have not made the economy grow any stronger. If we are going to spend more money on defense than the rest of the world combined, fight two wars, the drug war, and homeland security, and pay SS to the richest, and provide medicare to the richest, and provide health care to the poorer, then the Govt must raise taxes.

$9.4 trillion in debt; up from $5.7 trillion just 7 years ago. 2008 promising to be the biggest deficit ever.

This is a recipe for disaster for the future of our country.

" For decades, we have piled deficit upon deficit, mortgaging our future and our children's future for the temporary convenience of the present. To continue this long trend is to guarantee tremendous social, cultural, political, and economic upheavals. You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then, should we think that collectively, as a nation, we are not bound by that same limitation?" Ronald Reagan, inagural address 1981.

Phrases that defined a career - The Legacy of Ronald Reagan - MSNBC.com

donsutherland1 · 03-19-08, 08:57 PM

Iriemon,

The substantial increase in red ink that coincides with a rapidly slowing economy illustrates the impact of structural deficits. If a nation is unable to run a surplus during the height of economic booms, the fiscal situation can deteriorate rapidly when the economy softens. I fully expect that Fiscal Year 2008 will run a $500 billion or greater deficit (and that does not include the off budget items that would add to the deficit).

The enormous budget deficits will likely constrain the agendas of whomever is elected President in November. Restoration of a sound fiscal policy will likely be a key priority that takes precedence over most other matters. Certainly, if the U.S. runs enormous budget deficits at a time when the dollar continues to erode in value on the world's foreign exchange markets, the U.S. will be confronted by a rise in long-term interest rates. In turn, those increased long-term rates will serve to stifle economic growth. In perhaps a decade, this tough fiscal landscape could be exacerbated as the Social Security program begins to redeem some of its Treasury securities holdings.

Iriemon · 03-19-08, 09:51 PM

Quote:

Originally Posted by donsutherland1

Iriemon,

The substantial increase in red ink that coincides with a rapidly slowing economy illustrates the impact of structural deficits. If a nation is unable to run a surplus during the height of economic booms, the fiscal situation can deteriorate rapidly when the economy softens. I fully expect that Fiscal Year 2008 will run a $500 billion or greater deficit (and that does not include the off budget items that would add to the deficit).

The enormous budget deficits will likely constrain the agendas of whomever is elected President in November. Restoration of a sound fiscal policy will likely be a key priority that takes precedence over most other matters. Certainly, if the U.S. runs enormous budget deficits at a time when the dollar continues to erode in value on the world's foreign exchange markets, the U.S. will be confronted by a rise in long-term interest rates. In turn, those increased long-term rates will serve to stifle economic growth. In perhaps a decade, this tough fiscal landscape could be exacerbated as the Social Security program begins to redeem some of its Treasury securities holdings.

I pray for our country that your statement "that Restoration of a sound fiscal policy will likely be a key priority" is correct, don.

But the complete lack of attention to this issue over the past several years makes me fearful for the future of the nation. I think we are setting the scene for a huge inter-generational struggle between the boomers who want their SS/medicare benes, and the following generations, who will balk at paying the excessive tax rates necessary to fund the boomers benefits and interest on the huge debt the boomer generation is leaving.

DarkWizard12 · 03-19-08, 10:19 PM

Thing is, whats causing this deficit? I'll tell you:

*puts on Ron Paul Mask*

SPENDING!!!

donsutherland1 · 04-11-08, 11:33 AM

Today, the U.S. Treasury Department released its monthly treasury statement for the U.S. Government's finances. For the first 6 months of Fiscal Year 2008, the federal government has run a $311.399 billion deficit.

This deficit has largely been driven by continuing increases in spending that exceed growth in tax revenue. As compared to the same period for FY 2007, total tax revenue increased 2.2%. However, spending grew more than twice as fast, at 5.7% over the comparable period for FY 2007. This rapid increase in spending does not include the fiscal stimulus package that will start being paid out in May.

All said, even as the White House expects a $410.047 billion deficit for all of FY 2008, I believe a $500 billion or greater deficit is probably more likely given the combination of a continuing lack of fiscal discipline and a potentially contracting economy for at least a part of the remaining Fiscal Year.

Iriemon · 04-14-08, 10:50 PM

Quote:

Originally Posted by DarkWizard12

Thing is, whats causing this deficit? I'll tell you:

*puts on Ron Paul Mask*

SPENDING!!!

You think? I'd have to check; but I'm pretty sure the US Government has been SPENDING for quite a few yearsnow, even when it had a surplus budget in 2000.

So I don't think that's it.

Iriemon · 04-14-08, 10:51 PM

Quote:

Originally Posted by donsutherland1

Today, the U.S. Treasury Department released its monthly treasury statement for the U.S. Government's finances. For the first 6 months of Fiscal Year 2008, the federal government has run a $311.399 billion deficit.

This deficit has largely been driven by continuing increases in spending that exceed growth in tax revenue. As compared to the same period for FY 2007, total tax revenue increased 2.2%. However, spending grew more than twice as fast, at 5.7% over the comparable period for FY 2007. This rapid increase in spending does not include the fiscal stimulus package that will start being paid out in May.

All said, even as the White House expects a $410.047 billion deficit for all of FY 2008, I believe a $500 billion or greater deficit is probably more likely given the combination of a continuing lack of fiscal discipline and a potentially contracting economy for at least a part of the remaining Fiscal Year.

Don't forget the effect of the $150 billion tax giveaway. Is that counted as spending or a decrease in revenues, I wonder.