Monday, July 13, 2009
A trillion dollars just doesn't seem like a whole lot of money anymore after hearing about the hundreds of billions of dollars in bailout money that went to banks and automakers along with the Federal Reserve creating a trillion dollars or so out of thin air to buy all sorts of securities that nobody else seemed to want. The world has yet to descend into anarchy.
What's the big deal about a trillion dollar deficit nine months into the year?
The imbalance is intensifying fears about higher interest rates and inflation, and already pressuring the value of the dollar. There's also concern about trying to reverse the deficit -- by reducing government spending or raising taxes -- in the midst of a harsh recession.Trying to "reverse the deficit"?? That's a laugh.
The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to nearly $1.1 trillion.
The deficit has been propelled by the huge sum the government has spent to combat the recession and financial crisis, combined with a sharp decline in tax revenues. Paying for wars in Iraq and Afghanistan also is a major factor.
Everyone needs to loosen up a little bit - it's only money...