| The US deficit in 2008 stood at $459bn
(AP) WASHINGTON — The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year’s record for the full year.
The Treasury Department said Wednesday that the February deficit totaled $220.9 billion, 14 percent higher than the previous record set in February of last year.
The deficit through the first five months of this budget year totals $651.6 billion, 10.5 percent higher than a year ago.
The Obama administration is projecting that the deficit for the 2010 budget year will hit an all-time high of $1.56 trillion, surpassing last year’s $1.4 trillion total. The administration is forecasting that the deficit will remain above $1 trillion in 2011, giving the country thrree straight years of $1 trillion-plus deficits.
The administration says the huge deficits are necessary to get the country out of the deepest recession since the 1930s. But Republicans have attacked the stimulus spending as wasteful and a failure at the primary objective of lowering unemployment.
The administration defends the economic stimulus bill that Congress passed in February 2009 with a pricetag at the time of $787 billion as the right medicine to get the economy back on its feet. President Barack Obama has said even more is needed to battle an unemployment rate that remained stuck in February at 9.7 percent.
The White House says that job creation will remain a top priority, hoping to convince voters that Obama did not spend too much time during his first year in office trying to get Congress to pass health care reform.
The government’s monthly budget report showed the record $220.9 billion deficit for February reflected outlays of $328.4 billion and revenues of $107.5 billion. The February receipts marked the first time that revenues are up compared with the same month a year ago since April 2008. Revenues had fallen for 21 straight months as the recession cut into both individual and corporate income tax payments.
Deficits normally shoot up in February because it is a month when the government makes large refund payments to individuals and corporations as part of the tax filing process. Those payments were boosted this year by various tax credits that were expanded or added as part of the government’s stimulus efforts including the “Making Work Pay” tax credit and the first-time home buyers tax credit.
Through the first five months of the budget year, government revenues totaled $800.5 billion, down 7 percent from a year ago, while outlays totaled $1.45 trillion, up a slight 0.1 percent from a year ago.
The deficit of $651.6 billion through February is up by 10.5 percent from the $589.8 billion deficit run up during the first five months of the 2009 budget year. The government’s budget year begins on Oct. 1.
The budget that Obama sent to Congress in February projects that the deficits over the next decade will total $8.53 trillion. But the Congressional Budget Office last week put the 10-year total even higher at $9.8 trillion. Part of the reason for the $1.2 trillion difference is that the CBO is projecting slower economic growth and thus less tax revenues than the administration over the next decade.
The administration has maintained that the country must run large budget deficits until the economy has begun to grow at a sustainable pace that is bringing the unemployment rate down. Only then, the administration says, should the government focus on getting control of the deficits.
Obama has created by executive order an 18-member fiscal reform commission that has been charged with coming up with a plan to shrink the deficit to 3 percent of the economy within five years. The plan is scheduled to be unveiled in December, after the midterm congressional elections.
With the economy so weak, the interest rates that the government has to finance the flood of red ink have remained low. However, economists are worried that the favorable outlook on interest rates could change quickly if investors, including foreign investors, start to worry about the government’s commitment to restraining future deficits. China is the largest foreign holder of U.S. Treasury securities.
Through the first five months of this budget year, net interest payments totaled $86.5 billion, up 15.3 percent from a year ago.
In its report last week, the CBO predicted that the government debt held by investors would climb from $7.5 trillion at the end of last year to $20.3 trillion in 2020. CBO forecast that interest payments would more than quadruple from a projected $209 billion this year to $916 billion annually by the end of the decade.
By MARTIN CRUTSINGER
Feb 10, 2010
The elite puppet US government and the Fed are destroying America:
- US Taxpayers on Hook for $5 Trillion of Fannie, Freddie Debt … No Matter What Barney Frank Says
- US: 43% Have Less Than $10k For Retirement
- Marc Faber on CNN: The Patient is Already Dead
- Obama Administration Using Accounting Gimmicks That Would Make Enron ‘Blush,’ Says Republican Lawmaker
- Bizarre? Now this is bizarre! Audit the Fed banksters NOW!
- US Senator Judd Gregg Warns of ‘Financial Meltdown’ Risk
- Rep. Ron Paul Grills Ben Bernanke on Saddam Hussein, Watergate and the Fed
- US Unveils Plans For New $1 Billion High-Security Embassy In London — The Most Expensive It Has Ever Built
- FDIC Report: ‘We Were Broke And Getting Broker’
- US: Millions of Unemployed Face Years Without Jobs
- US: Wealth Disparities Approaching 1920s Levels
- Judge Napolitano and Angela Keaton on Freedom Watch: Obama’s Bush Foreign Policy
- Rep. Ron Paul At CPAC 2010: ‘We Are On The Brink Of A Financial Cataclysmic Event.’
- Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion
- Societe Generale Chief Strategist Albert Edwards: Theft! Were the US & UK central banks complicit in robbing the middle classes?
- How to invest for a global-debt-bomb explosion; Prepare for an apocalyptic anarchy (Market Watch)
- Marc Faber on CNBC: All Governments Will Default On Their Debt, Including The US
- Cynthia McKinney at Munich Germany NATO Peace Rally: ‘My Country Has Been Hijacked By A Criminal Cabal’
- Report: 1 in 5 US Homeowners Underwater; Foreclosures at Record High
- President Obama’s Pledge Never to Raise Taxes on Anyone Making Less Than $250,000 a Year
- Rep. Alan Grayson: ‘20 Percent Of Our Accumulated Wealth Over The Course Of 2 Centuries Gone in 18 months!’
- Paul Craig Roberts: It Is Now Official: The U.S. Is A Police State
- Prof. Russell Roberts Testifies Before House Committee: ‘I Want My Country Back!’
- Director of National Intelligence Says US May Kill Americans Abroad
- President Obama Ups Pakistan Drone Strikes in Assassination Campaign
- The New Vision of the Obama Administration: War Without End
- Pentagon’s New Record Black Budget Tops $56 Billion
- Rep. Ron Paul on Obama seeking to assassinate ‘US citizens’ he labels as terrorist
- White House to Paint Grim Fiscal Picture: Another Record Budget Deficit
- US: GDP Mirage – The Last Hurrah
- Controller: Pennsylvania Capital Should Weigh Bankruptcy
- Marc Faber: Obama Makes Bush Look Like a Genius
- Obamanomics: Why Did the ‘Stimulus’ Fail to Help the US Economy?
- Paul Craig Roberts: How Wall Street Destroyed Health Care – Greed, Be Thou My God
- Ron Paul: US Foreign Policy is Bankrupting America
- Rep. Ron Paul: State of the Republic Address – ‘Dangerous Times Indeed.’
- America’s Impending Master Class Dictatorship! (MUST-READ!)
- The CFR Controls American News/Media
- Senate Proposes Increasing US Debt Limit to $14.3 Trillion: “If Congress does not enact this legislation, and soon, then the Treasury would default on its debt for the first time in history,” said Senate Finance Committee Chairman Max Baucus
- US: Unfunded Benefits Dig States’ $3 Trillion Hole
- Illinois enters a state of insolvency: ‘We’re close to de facto bankruptcy, if not de jure bankruptcy.’
- The No.1 Trend Forecaster Gerald Celente: Financial Mafia Controlling US and Wall Street
- Peter Schiff: The Lunacy of US Government Programs
- Former Dean of Harvard College Harry R. Lewis: Larry Summers, Robert Rubin: Will The Harvard Shadow Elite Bankrupt The University And The Country?
- Experts: Dollar Crisis Looms if US Doesn’t Curb Debt
- Marc Faber on Coming Sovereign Debt Crisis: Next Countries to Default are the US, Japan and the ‘PIIGS’
- Fitch: US Must Cut Spending To Save AAA Rating; US December Deficit Nearly Doubles
- The Coming Sovereign Debt Crisis
- US slides deeper into depression as Wall Street revels
- PIMCO’S Bill Gross: ‘Let’s Get Fisical’ (… or why the US will not make it.)
- Barack Obama’s Health Care Lies And Reversals
- US sheds 85,000 jobs in December; Record 40% Of Unemployed Without Job For 27+ Weeks
- Peter Schiff on Fast Money: ‘America is broke’; ‘The Fed created a currency crisis’; ‘Dollar to collapse 50-70% or more’
- US: Public Pensions Face $2 Trillion Deficit
- U.S. Avoids Technical Default By Three Days
- As an American, I refuse to buy mandatory health insurance … that supports Big Pharma
- The US Government Is Preparing For Collapse: Your Legal Right To Redeem Your Money Market Account Has Been Denied
- Prof. Dr. David Michael Green: Now I’m Really Getting Pissed Off … With Obama
- US Treasuries Post Worst Performance Among Sovereign Markets In 2009
- US losses will top $400 billion on Fannie Mae and Freddie Mac
- US: More Ammo For The Treasury Bazooka
- US government wants farmers to use coal waste on fields
- The No.1 Trend Forecaster Gerald Celente: The Terror And The Crash of 2010
- We’re Screwed! Hyperinflation like in the Weimar Republic; Great Depression worse than in the 1930s
- US Congress: Banksters Get $4 Trillion Gift From Barney Frank
Traitor in chief:
- Treason: Obama gives INTERPOL immunity from the Constitution (Amending Executive Order 12425)
- Peter Schiff on Obamacare, Freddie Mac & Fannie Mae: The Nightmare Before Christmas
- Obama administration backs Fannie Mae and Freddie Mac no matter how big their losses may be
- Rep. Dennis Kucinich: US War Presidents ignore Congress and Constitution
- Obamacare: Big payoffs to senators on health bill stoke public anger
- US: Trillions Of Troubles Ahead
- Chinese central banker Zhu Min: ‘The world does not have so much money to buy more US Treasuries.’
- Obamacare: Change Nobody Believes In
- Obama’s surge comes at a cost: At least $57,077.60 per minute
- US National Debt Tops Debt Limit
Hypocrite in Chief (Funny):
- President Obama: Another Busy Day in The Oval Office!
- Fascism in America: By Political Definition The US Is Now Fascist, Not A Constitutional Republic
- John Williams of Shadowstats: Prepare For The Hyperinflationary Great Depression
Liar in Chief (NOT funny!!!):
- Barack Obama Lies 7 Times In Under 2 Minutes!!!!!
- Robert Fisk, The Independent’s award-winning Middle East correspondent: Obama is a Disaster, Worse than Bush
- Rep. Dennis Kucinich: ‘These Wars Are Corrupting The Heart Of Our Nation!’
- Famous Investor Jim Rogers: Incompetence In Washington, Abolish The Fed And The Treasury
- Rep. Dennis Kucinich: The Truth About Afghanistan
- Obama’s Big Sellout (Rolling Stone Magazine)
- Obama administration to lift debt ceiling by $1.8 trillion
- Climategate: President Obama’s rule by EPA decree is a coup d’etat against Congress, made in Britain
- Obama administration tells Pakistan: Tackle Taliban or we will
- MSNBC Rachel Maddow: War President Obama
- Ron Paul: ‘Obama is Actually Preparing Us For Perpetual War’
- Afghanistan Surge to Cost At Least $40 Billion, That Is $1.333.333 For One US Soldier Per Year
- Rep. Brad Sherman: Geithner rejects $1 trillion limit on bailout power (Section 1204 is unlimited in dollar amount!)
Liar in Chief (Over 300 soldiers died in 2009 because of this lie!!!):
- Obama: ‘I will promise you this, that if we have not gotten our troops out by the time I am President, it is the first thing I will do. I will get our troops home. We will bring an end to this war. You can take that to the bank.’
Tags: Barack Obama, Debt, Economy, Global News, Government, Obama administration, Politics, U.S.