Exploding Federal Deficit

As previously reported the Federal Deficit is Soaring with estimates for this year being between $1.6 trillion or $1.8 trillion. Now the projected deficit for the next 10 years is up $2 trillion. There are so many disturbing elements to this ever expanding deficit, not least of which is how the U.S. economy will recover with this level government debt. As the deficit shoots upwards so does the risk of inflation, making recovery increasingly more difficult. Not to mention that China owns so much of our debt that at this point they're practically a part owner of this country. The government seriously needs to reexamine its priorities and reign in its spending or this country will find itself in a world of hurt.

Major Garrett reports New 10-year Federal Deficit: $9 Trillion, Up from $7 Trillion

The Obama Office of Management and Budget tells Fox the federal deficit over the next decade is projected to be $2 trillion higher than previous estimates.
The new 10-year aggregate federal deficit is $9 trillion.

An official said the prolonged recession and the ensuing decline in federal revenue prompted a recalibration of the deficit numbers.

The numbers also reflect a projection that post-recession economic growth may not be as robust as after previous recessions, the official said.

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An Unsustainable Federal Deficit

Budget Deficit Tops $1,000,000,000,000 #tcot #tlot

From MarketWatch.com U.S. budget deficit rises above $1 trillion

WASHINGTON (MarketWatch) -- The U.S. recorded a federal budget deficit of $94.3 billion in June, pushing the cumulative deficit so far this year to a record $1.08 trillion, the Treasury Department reported Monday.

Outlays rose in June to $309.6 billion, while receipts climbed to $215.3 billion in the month.

Among the outlays for June is $11.3 billion in Troubled Asset Relief Program funds, the bailout program for banks and U.S. automakers.

At this time last year, the cumulative federal budget deficit was just $285.8 billion.

The Obama administration expects a deficit of $1.84 trillion for the full fiscal year, which ends in September. However, that number is likely to be revised higher later this month, since the economy has been much weaker than when the original estimate was made.

The budget deficit for June is down from the $189.7 billion figure in May but was still enough to push the fiscal year-to-date deficit past the $1 trillion mark.

For fiscal year 2010, which begins in October, the administration is projecting a $1.26 trillion deficit.

Obama Comments On Tea Party Protesters

The basic reason for the Tea Party protests is the concern about government spending and wasteful practices, and that many feel their concerns about government spending and bailouts are not being heard. An interesting element of the Tea Parties is the make of the participants. They were a rather diverse group of fiscal conservatives. Some in the media used the protests to promote their own brand of conservatism, or on the other extreme, some in the media dismissed the protesters as 'radical right' crazies. However, if you look at local news coverage of the Tea Parties you can see that they represented a wide range of people who have a legitimate concern about how the government spends money. President Obama would likely have been better served by ignoring the protesters, as was the White House's first reaction to the Tea Parties. Belittling these people was politically unwise, and pretending that his administration has addressed any of the concerns of fiscal conservatives was less than honest.

Obama on "People Waving Tea Bags Around"