May 11. 2009

President Barack Obama

The U.S. government is poised for a record federal deficit that surpasses the $1.8 trillion the White House estimates.

As I stated last week, just printing up money is not the solution to the financial crisis and it is greatly harming the nation’s financial interests. This record spending is going to create other undesirable side effects that will hamper any financial recovery mission the nation hopes to undertake.

US red ink rising even higher, to $1.8T

On Monday May 11, 2009, 3:29 pm EDT

US red ink to top $1.8 trillion, 4 times record; gov't borrows 46 cents for every dollar spent. WASHINGTON (AP) -- The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates.

Budget office figures released Monday would add $89 billion to the 2009 red ink -- increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.

The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's economic stimulus bill -- as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.

As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps…

http://finance.yahoo.com