US: Highest November Budget Deficit On Record

See also:

US Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit Spending’

Prof. Kotlikoff: ‘The US is bankrupt’, Government Debt At $200 Trillion – 840 Percent of Current GDP

Three Horrifying Facts About the US Debt ‘Situation’:

#3: The US will Default on its Debt

… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years.

Bear in mind, I’m completely ignoring the debt we took on with the nationalization of Fannie and Freddie, AIG, and the slew of other garbage we nationalized or shifted onto the Fed’s balance sheet. And yet we’re STILL talking about every US family making $31,000 in debt payments per year for 75 years to pay off our national debt.

Obviously that ain’t going to happen.


WASHINGTON (AP) — The federal budget deficit rose to $150.4 billion last month, the largest November gap on record. And the government’s deficits are set to climb if Congress passes a tax-cut plan that’s estimated to cost $855 billion over two years.

The Treasury Department says November’s budget gap was 25 percent more than the deficit in November 2009.

For the first two months of the current budget year, which began Oct. 1, the deficit totals $290.8 billion. That’s 2 percent less than for the same period a year ago. And economists had been estimating that the full-year deficit would decline after two years of record highs.

But analysts say the tax deal President Barack Obama reached with Republicans this week will give the 2011 budget year the largest deficit in history — $1.5 trillion, according to economists at JPMorgan Chase. It would mark the third straight year of trillion-dollar-plus deficits.

Under the tax-cut plan, JPMorgan economist Michael Feroli said he expects a $1.5 trillion deficit this year to be followed by a $1.2 trillion gap in 2012.

While many economists expected the Bush-era tax cuts would be extended and reflected that in their deficit forecasts for coming years, they had not factored in other parts of the tax-cut package including a 2 percentage-point reduction in the Social Security payroll tax for next year, taking the tax for individuals from 6.2 percent to 4.2 percent, at a cost to the government of $112 billion over the next year.

Before the tax cut agreement, many private economists were forecasting that the deficits would start to slowing fall in coming years. The major Wall Street firms who serve as primary dealers for the government’s debt auctions projected last month that the 2011 deficit will dip to $1.21 trillion and decline further to $1.02 trillion in 2012.

The 2009 deficit is the current all-time high, at $1.42 trillion. The second-highest deficit ever is the $1.29 trillion deficit for the 2010 budget year, which ended Sept. 30.

Economists do expect the tax cut package, which the Senate is expected to begin voting on Monday, to boost economic growth.

Nariman Behravesh, chief economist at IHS Global Insight, said Friday, he believed the tax cut package would boost overall economic growth, as measured by the gross domestic product, to 3 percent in 2011, up from the firm’s forecast before the tax deal of 2.4 percent GDP growth in 2011.

Source:  AP

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US Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit Spending’

Prof. Kotlikoff: ‘The US is bankrupt’, Government Debt At $200 Trillion – 840 Percent of Current GDP

The Dylan Ratigan Show with Prof. William Black: ‘Fire Holder, Fire Geithner, Fire Bernanke’

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Three Horrifying Facts About the US Debt ‘Situation’:

#3: The US will Default on its Debt

… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years.

Bear in mind, I’m completely ignoring the debt we took on with the nationalization of Fannie and Freddie, AIG, and the slew of other garbage we nationalized or shifted onto the Fed’s balance sheet. And yet we’re STILL talking about every US family making $31,000 in debt payments per year for 75 years to pay off our national debt.

Obviously that ain’t going to happen.

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