The Office of Management and Budget says for the first time ever, the U.S. government is borrowing 50 cents of every dollar it spends.
Barack Obama and democrats will quadruple the U.S. deficit this year.
The receipts of the U.S. government from taxes paid was down 15% in January 2009 compared to January 2008. In April, receipts were off a full 30%.
Meanwhile, U.S. government spending is way up: up fully $38 billion in April alone over April 2008.
The difference between receipts and money spent is the deficit and that could exceed $1.8 trillion this year; added to the U.S. burden of borrowed money and interest paid.
The massive budget deficit created by democrats this year represents a massive 12.9% of gross domestic product. President Obama expected the deficit level to be 12% of GDP this year. This puts the US above the UK deficit that runs more than 10% of GDP, and puts the US above troubled states Pakistan and Hungary.
As several commentators have said, the U.S. would not be given permission to join the EU with this much debt….
From The Associated Press
With the U.S. economy performing worse than hoped, revised White House figures point to deepening budget deficits, with the government borrowing 50 cents for every dollar it spends this year.
The deficit for the current budget year will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.
As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.
For the current year, the government would borrow almost half the money it takes to run the government under the administration’s plan. In one of the few positive signs, the actual 2009 deficit is likely to be $250 billion less than predicted because Congress is unlikely to provide another $250 billion in financial bailout money.
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What does all this mean? Well, your taxes will likely go up, and Washington should be looking for ways to spend less and make cuts….
This also means interest rates will likely go up for everyone, across the board, for up to ten years, because individual borrowers will be competing with the federal government for money…