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US government budget deficit hits 60 year high of $1.4 trillion

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The US budget deficit is expected to hit a record 1.4 trillion dollars in 2009, some 950 billion dollars greater than the shortfall recorded last year, the Congressional Budget Office said Wednesday.

Congress’s non-partisan financial watchdog said the forecast federal deficit for the fiscal year that ended in September was the highest shortfall — relative to the size of the economy — since 1945 (AFP, 2009).


Looking at this problem, there are two responsible, conservative solutions: either raise taxes enough to balance the budget, or slash the federal budget (including defense spending) and end our costly, wasteful projects like nation building the Middle East and other areas of the world (anyone ever know the founders said “no entangling alliances?).

We can not continue forever the deeply immoral and irresponsible Bush-area spending wild and reckless foreign adventures by borrowing the money for it or passing off the debt to someone else (our children and grand children). America has become a beggar nation, a welfare queen, living off of other people’s money and trading the future of his children for short-term fixes.

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In this as in so many other things, Obama has fully adopted the disastrous policies of his predecessor, demonstrating yet (not that it was necessary) corruption and collusion between the two major parties, which – despite their different mascots – are owned by the same corporate entities.

The deficit resulted from both declining revenues and increased spending, stemming mostly from aid to the financial system and fiscal stimulus to jolt the world’s largest economy from a prolonged recession, the CBO said.

Revenues in 2009 were almost 420 billion dollars or 17 percent below receipts chalked up last year, the lowest level in over 50 years, it said.
At the same time, outlays increased by over 530 billion dollars or 18 percent in 2009 to the highest level also in over half a century.

The federal deficit in 2008 was 459 billion dollars.
The deficit estimates were based on data from daily statements from the US Treasury and CBO projections.

Treasury officials said they would report the actual deficit in the middle of this month.
The White House projected in August that the 2009 fiscal budget deficit would reach 1.58 trillion dollars.

It also estimated a whopping 9.05-trillion-dollar deficit for the 2010-2019 period, a two-trillion-dollar increase from the February estimate made a month after President Barack Obama entered office and inherited a gaping deficit from his predecessor, George W. Bush.

The CBO said the federal government recorded a deficit of 31 billion dollars in September, compared with a surplus of 42 billion dollars in the same month last year.

Original article continues at AFP

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