Federal Deficit Tops $1 Trillion For The First Time Ever

Posted by JOE WINDISH, Technology Editor in Economy.
Jul 13th, 2009 | 12 responses

Ouch:

WASHINGTON (Dow Jones)–The fiscal year-to-date U.S. budget deficit broke past $1 trillion in June, a grim testament to the recession and financial crisis.

The federal government spent $94.32 billion more than it made in the ninth month of fiscal 2009, the Treasury Department said Monday in its monthly budget statement.

Aid to spur the slumping economy and a government bailout of Wall Street are driving the deficit. There are three months left in fiscal 2009.

“Many private analysts still expect the fiscal-year deficit to top $2 trillion,” Insight Economics analyst Steven Wood said.

The growing imbalance has fanned fears of higher interest rates and inflation.

Last year, in all of fiscal 2008, the deficit was $454.8 billion. That was a record.

12 Responses to “Federal Deficit Tops $1 Trillion For The First Time Ever”

1. Anastasia Beaverhausen says:

   July 13, 2009 at 9:59 pm

   Thanks for the tip-off…frightening thought that I and my children will be paying that off….or paying for it at least….Was explaining to my 9 year old that we borrow more than we generate as a country, and defining defecit for him. He asked, Mom…What comes after trillion? I said, I dont want to know, and neither do you…He thought for a moment and realized that he would never run his own finances that way. Out of the mouths of babes, right?

   But I promised my son that I would ask, who knows what comes after trillion???? Anyone?
2. Dr_J says:

   July 13, 2009 at 10:41 pm

   Universal health care.
3. Ron Beasley says:

   July 13, 2009 at 10:51 pm

   Unwinnable Wars
4. Don Quijote says:

   July 13, 2009 at 11:36 pm

   Republican Fiscal Policies…
5. AustinRoth says:

   July 13, 2009 at 11:36 pm

   Ron -

   BS. The war is winding down (supposedly), and why would it suddenly cost SO much more?

   Answer. It does not. The Chosen One has played all his supporters for fools, fiscally. And you are all now left making excuses for his and Congress profligate spending making things worse.

   Much worse.
6. superdestroyer says:

   July 14, 2009 at 6:32 am

   Now the question becomes: Why would anyone invest in the private sector. The future level of taxes will make many investments unviable. The looming health, energy, environment, employment, and finance regulations make so many segements of the economy uncertain and too risky to warrant investment.

   Also, the proposed healthcare regulations will add to the deficit and based upon past government performance, they costs will be much higher than estimated.
7. Don Quijote says:

   July 14, 2009 at 7:38 am

   BS. The war is winding down (supposedly), and why would it suddenly cost SO much more?

   It's not costing more, it's just that this year it is not ab off-budget item…

   Iraq War Facts, Results & Statistics at June 24, 2009

   U.S. SPENDING IN IRAQ

   Spent & Approved War-Spending – About $800 billion of US taxpayers' funds spent or approved for spending through mid-2009, including $76 billion requested by President Obama and approved by the House.

   U.S. Monthly Spending in Iraq – $12 billion in 2008

   U.S. Spending per Second – $5,000 in 2008 (per Senate Majority Leader Harry Reid on May 5, 2008)

   Cost of deploying one U.S. soldier for one year in Iraq – $390,000 (Congressional Research Service)

   Lost & Unaccounted for in Iraq – $9 billion of US taxpayers' money and $549.7 milion in spare parts shipped in 2004 to US contractors. Also, per ABC News, 190,000 guns, including 110,000 AK-47 rifles.

   Missing – $1 billion in tractor trailers, tank recovery vehicles, machine guns, rocket-propelled grenades and other equipment and services provided to the Iraqi security forces. (Per CBS News on Dec 6, 2007.)

   Mismanaged & Wasted in Iraq – $10 billion, per Feb 2007 Congressional hearings

   Halliburton Overcharges Classified by the Pentagon as Unreasonable and Unsupported – $1.4 billion

   Amount paid to KBR, a former Halliburton division, to supply U.S. military in Iraq with food, fuel, housing and other items – $20 billion

   Portion of the $20 billion paid to KBR that Pentagon auditors deem “questionable or supportable” – $3.2 billion

   Number of major U.S. bases in Iraq – 75 (The Nation/New York Times)

   <a href=”http://www.washingtonpost.com/wp-dyn/cont… > Nation
   Obama Plans More Funding For Afghan War
   

   President Obama's new Afghanistan-Pakistan strategy will require significantly higher levels of U.S. funding for both countries, with U.S. military expenses in Afghanistan alone, currently about $2 billion a month, increasing by about 60 percent this year.

   There go a least 160 billion being poured down the drain…
8. AustinRoth says:

   July 14, 2009 at 8:18 am

   DQ -

   So, The Messiah and His Glorious Programs have nothing to do with the financial problems. It is The Great Satan BushCheney still at work, corrupting the Good Works for His People, who in his Benevolence, He is trying to save.

   The Great Leader is working diligently for you, fighting the Evil Capitalists who exploit His People. He brings only Good News and Tidings; his enemies bring only destruction.

   All hail the God-King Obama!

   btw – We are still running under last year's budget, so nothing has changed vis-a-vis how the war effort is being funded, or its impact on the budget, so the whole argument is a red herring.
9. NRafter530 says:

   July 14, 2009 at 1:03 pm

   Considering none of his glorious programs have come to fruition yet…no, they have nothing to do with the financial problems…get back me in 2013.
10. NRafter530 says:

    July 14, 2009 at 1:06 pm

    Quadrillon
11. Don Quijote says:

    July 14, 2009 at 8:45 pm

    I will let the great leader complete four Friedman units in office before making a definite judgment, until then I will give him the benefit of the doubt…

    So far I am not impressed, but for totally different reasons than yours.
12. VoteTheDay says:

    July 19, 2009 at 5:24 pm

    Will Barack the Great prove his words and make the federal deficit of US head down? Moreover, will he be able to half it till his first term in office is over? http://www.votetheday.com/americas-20/us-federa…