Wikinvest Wire

U.S. deficit tops $1 trillion - party on Garth!

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.

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.
Trying to "reverse the deficit"?? That's a laugh.

Everyone needs to loosen up a little bit - it's only money...

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Anonymous said...

Can we put this into context, before we all get Hysterical? Isn't this 8% of GDP? We're not going into foreclosure yet.

Tim said...

Actually, according to the latest table over at The Economist, it's now at 13.7 percent, just behind the British at 13.9 percent. Iceland and Ireland are the only other countries in double-digits at around 12 percent.

Anonymous said...

Ironic, looking at that Economist link Argentina is the model of economic stability.

Anonymous said...

Tim " Goldman Sachs" Geithner says the USA has a giood chance of being out of recession by the end of the year.He obviously doesn't look at your site Tim !

Tim said...


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