Federal Government Budget Deficit $389B Through December -------------------------------------------------------------------------------- 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.
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.