US reports budget deficit for a record 18th time

Discussion in 'Wall St. News' started by ASusilovic, Apr 12, 2010.

  1. April 12 (Bloomberg) -- The U.S. posted a budget deficit for a record 18th straight month in March, reflecting gains in government spending to bolster the economy.

    The excess of spending over revenue declined to $65.4 billion last month, compared with a shortfall of $191.6 billion in March 2009, according to Treasury Department figures released today in Washington. The year-over-year narrowing reflected a decline in outlays for the Troubled Asset Relief Program to shore up financial firms.

    A deficit that’s forecast to reach a record $1.6 trillion this fiscal year illustrates the challenges facing President Barack Obama and Congress as they struggle to spur the recovery while keeping the budget gap manageable. Deterioration in the government’s balance sheet in coming years raises the risk of higher interest rates.

    “We can’t keep this up,” said David Wyss, chief economist at Standard & Poor’s in New York. “We’re getting more revenue, but we’re still spending. That’s the problem. You’ve got to start paying your way.”

    Yeah, some day it will be PAY DAY. :cool:
  2. Bring on Cap and Trade!
  3. we no have chance of either growing or taxing our way out of the current situation.
  4. They will sell more bonds

    If interest rates rise due to lack of demand to these bonds then they will print money

    But there will be no inflation and us dollar will not lose money. Because there is no other currency to compete with dollar

    So trillions and trillions of dollars will be printed and inflation will not pick up and dollar will not lose value.

  5. 1) Is David Wyss looking for a new job yet?
    2) Asset deflation is a bitch. :cool:
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