Federal Government Budget Deficit $389B Through December

Discussion in 'Economics' started by Cdntrader, Jan 7, 2010.

  1. Federal Government Budget Deficit $389B Through December




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    Thu Jan 07 18:55:38 2010 EST


    By Corey Boles
    Of DOW JONES NEWSWIRES


    WASHINGTON (Dow Jones)--The federal government's budget deficit reached $389
    billion through the first three months of fiscal 2010, the non-partisan
    Congressional Budget Office said Thursday.

    This was up from last year's $332 billion at the end of the first quarter of
    fiscal 2009, CBO said.

    In its monthly review of the federal government's balance sheet, the CBO said
    the deficit in December stood at $92 billion, about $40 billion wider than the
    same month last year.

    Normally, December is a net positive month for the government due to
    quarterly payments of income tax by corporations and higher withholding for
    individuals from year-end bonuses and seasonable employment.

    The deficit reached a record high of $1.4 trillion in fiscal 2009, more than
    triple the previous high set just the previous year.

    Congress was forced to increase the federal government's debt ceiling, the
    total amount it is allowed to borrow, to around $12.4 trillion before lawmakers
    left town for the holiday recess. This increase is expected to support the
    government's borrowing needs only through February.

    The Senate is set to take up legislation increasing the borrowing limit
    further when lawmakers return on Jan. 19.
     
  2. pitz

    pitz

    So much for any economic 'recovery'.

    But hey, what's a few trillion between friends...

    Just remember kids, balance sheets must balance in the long run... Assets = Liabilities. If the liability side of the balance sheet keeps growing, by definition, the asset side must as well.
     
  3. not hard to do at all if you print your own "assets" and devalue your liabilities accordingly