Right Rev[elation]


Conservatism mixed with a little end time theology

Federal Deficit Increases $181 Billion…In July

Remember this Obama –

President-elect Barack Obama on Tuesday emphasized his commitment to fiscal responsibility, promising that his team would strip the federal budget of all unnecessary spending to help offset large outlays expected for his planned stimulus package.

But Mr. Obama didn’t provide many specifics, and he gave little sense of how he would tackle entitlement programs like Medicare and Social Security. Few experts believe the budget deficit can be brought under control without trimming spending on these programs.

That seems to be a thing of the past, as with several other promises.  Today, the Washington Times reported a few new spending and deficit records for America:

Federal spending surpassed the $3 trillion mark for the first time in history during July, and the record-shattering fiscal year still has two months to go.

That in itself in frightening.  Even more harrowing is the current trend:

The U.S. government spent more money last month – $332 billion – than in any other month in history, the Treasury Department reported Wednesday. Outlays were more than double tax receipts in July, generating a monthly deficit of $181 billion.

In one month we gained over $180 billion in new debt.  Annualized that would equal 2.172 trillion in new debt each year (181 million x 12 months = 2.172 trillion).

That is obviously an unsustainable cycle.

However, the last thing I want to point out is the comparison of Obama’s spending to Bush’s:

For the first 10 months of fiscal 2009, which ends Sept. 30, the budget deficit totaled $1.27 trillion, nearly three times last year’s record annual deficit of $459 billion.

Of those 10 months, Obama has now owned 7.  Plus, most of the $459 billion deficit came from the 1st Bush stimulus he passed right before he left office ($383 billion) which I also did not agree with.

I keep hearing about interest skyrocketing as a result of this, but call me naive as I’m still not sure what the correct response should be as a result of all this spending.  Stock up on food?  Buy chickens?  Invest in gold?

Well, as they say, hindsight is 20/20 – hopefully there won’t be too much I regret not doing!


Filed under: Economy, Media/News

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