U.S. Deficit To Hit All Time High

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U.S. Deficit To Hit All Time High

January 31. 2010

U.S. President Barack Obama

U.S. President Barack Obama is seeking to implement a record $3.8 trillion budget for 2011, increasing the national deficit by an unprecedented $1.6 trillion dollars. This is trouble waiting to happen.

Unprecedented, crushing debt, can topple the federal government, forcing a complete restructuring of the national legislative hierarchy, due to lack of funds. If the national debt becomes too high, there will only be money for local government, while many federal agencies would face the chop.

One cannot keep pressing up money and expect foreign nations will keep opening their coffers to dole out generous loans, if repayment is painfully not possible, due to dire financial straits. Too much spending is going on and too little saving.

Deficit to Hit All-Time High

JANUARY 31, 2010, 7:36 P.M. ET - Obama's $3.8 Trillion Budget Forecasts a $1.6 Trillion Shortfall for 2010 Before It Drops.

WASHINGTON—President Barack Obama will propose on Monday a $3.8 trillion budget for fiscal 2011 that projects the deficit will shoot up to a record $1.6 trillion this year, but would push the red ink down to about $700 billion, or 4% of the gross domestic product, by 2013, according to congressional aides.

The deficit for the current fiscal year, which ends on Sept. 30, would eclipse last year's $1.4 trillion deficit, in part due to new spending on a proposed jobs package. The president also wants $25 billion for cash-strapped state governments, mainly to offset their funding of the Medicaid health program for the poor.

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