WASHINGTON – Nine months into the fiscal year, the federal deficit has topped $1 trillion for the first time.
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.
The country's soaring deficits are making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term.
"These are mind boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run."
Government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent.
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26 comments:
Let's talk about the Unemployment Rate. NOT all Americans file for Unemployment. If there's one thing that pisses me off about these news reports and or numbers being delivered by our government it's foolish numbers like 9.5% Unemployment.
Look around and you'll clearly see Unemployment is more like 35%!!!!! Now don't you Dems come on here and say it's not true.
I should add, look at all the business owners that had to close their businesses and upper management who are NOT qualified to get Unemployment as well. BS numbers, that's all there is to it. There's a whole lot more people out of jobs that our government wants to admit.
I say we blame it on Bush
Obama change we can count on! ugh !
5:03...good place to start. I have an idea...let's stop all the bitchin like spoiled brats and support our President.
we will never get out of debt as long as the federal reserve keeps making the money. so many i.o.u.'s out there we will never get out of debt. we need to back to the gold standard or the debt will keep rising. every time money is printed there is already debt accumilated to it.. when will it ever end???
We need regular Americans running for office. We must use ideas and the grassroot people to make a real change, to go back to our roots.
Not to mention the people that can't collect unemployment anymore because they have reached their benefit maximum
Look at the very moment that the economy started to tank.
It was when the Democrats took over control of the congress in 2006.
The fall of the economy sped up when it became clear Obama would win the election, and his irresponsible and wreckless policies have thrown the economy off of a cliff.
Wake up Obamabots. You got your guy in. Now you have to live with the concequences
We need government accountability. Personally, I feel that the levels of corruption in government have reached a modern time high. 5:51 you are dead-on. I like that local woman, Julie Brewington, who was on the Daily Times' front page today. She's got guts for challenging the council's meeting times.
5:26 - I'm just wonderin' how much financial support are you giving this country? I'm watching just about half of my family's earnings along with my children's future spin down the toilet. I'm not going to support these socialist policies and I dare you to try to make me stop bitchin!
No Worries people your President from Africa is bringing change to this country. Nobomma gonna fix it. He's gonna fix it so good it will take the next 100 years to get out of the mess he's making. GET RID OF THIS FAKE TURD NOW! The things he's doing have never worked and never will. Why should we be paying for the stupidity of big business let em fail and then there will be room for new business to take over and do a better job. Problem is now it's gone so far that it's bound to hurt quite a few innocent people on the way down. Keep propping big business up and the rest of us are going to end up going down with them.
Yup and it was just a mere 9 years ago we had a surplus. A trillion dollars sounds about right for two wars going on for 8 years. If we had actually invested that trillion dollars into our own country we might have seen some positive results.
Bring our soldiers home and offer them police jobs "That pay better" and put some troops on our borders. We have a war on the streets of America right now.
Now are we happy, start telling Congress to STOP the SPENDING...that's a start to recovery, next step, give businesses and tax breaks to people who actually pay taxes, collect taxes off of the the things we already tax more efficiently and stop the waste. I don't care if you're a Republican or a Democrat-join the next Tea Party and get Congress to listen, they only thing they hear are our votes, let them know their positions are at stake...
Give us a President we can believe in ! I'm growing weary of Obama's double talk.
Joe , if you look at each of the
government branches and their
areas of responsibilty , you will find out that they do not function
anymore. I guess what I'm trying to say is that , we don't have a government anymore. We have melted into a dictatorship . It is very obvious. It's sad , but true .
Spend, spend, spend. STOP the spending!
Like a kid with a credit card. YOU CAN'T SPEND MONEY YOU DON"T HAVE>
For all of you blaming President Obama, get a clue. He came into office in Jan. His biggest piece of legislation (Recovery Act) wasn't signed until late February; this planned was designed to work over the course of 2 years. How can you now start saying it was a mistake after 1 business quarter. All the angry conservatives preached patience and diligence during all 8 years of Bush. If you weren't onboard you were unpatriotic.Where is the "patience and diligence" now? Give the man time to work.
Joe,
While I agree that unemployment rate is probably higher than 9.5%, I think that 35% is just a number you made up. Yes, not every person files for unemployment but not every person who works pays taxes. There are plenty of individuals who get paid "under the table". Again I do not live on the Eastern Shore, but here in Baltimore every other business has a help wanted sign posted at the door.
Economic situation in the capitalist free market society, which we still are, has little to do with whomever is in the office. To be fair, I do not think that economic boom in late 90's had much to do with Clinton administration - internet and computer related jobs became very prevalent.
Loose SEC regulations under Bush allowed financial institutions to practice predatory landing which was a major cause for economic collapse. People making 30K a year would purchase homes worth 500K. Once ARM skyrocketed, consurmers being in debt stopped spending. This is a simple law of supply and demand. Businesses do not need workers to produce goods and services since there is no demand. Having the "green" movement, whether it is right or wrong, did not help auto manufacturers who kept making large SUVs and trucks. Unions do not help either, why should an assembly worker with little or no education make $25 per hour and retire with full benefits?
Should you blame Bush or SEC for not regulating banks? If they did that would be socialism, wouldn't it???
Ales, thank you for your comment.
This Blog wasn't created to get everyone to agree with everything I say, it's opinion.
While you may see Help Wanted Signs up, you'll see far more For Rent and For Sale Signs than anything else, like we're seeing here on the Eastern Shore.
The bottom line is, I firmly believe you can always add 20%+ to anything the government tells you and that will bring you much closer to reality.
8:37 Wake Up.. Obama said the Recovery Act would start right away. This is why they had to push the bill through without reading it. Now they are saying its going to take 2 years to work and now they are already talking about another Stimulus Package. Why would they be talking about another Stimulus when the first one is "working"... Look I wish I could give the man a chance but what hes trying to do WILL NOT WORK (Anyone with Common Sense would realize this).... Health Care for everyone would be great but WE CAN NOT AFFORD IT. When will you libs stop fantasizing and get back to reality.
I do what the government does spend spend spend and pay the cost later.
America will have to hit rock bottom before she crawls her way back. Its going to take another seven or eight years minimum. This recession didnt start two years ago but I believe five or six years ago and has gradually sank lower and lower. The economy will improve at the same slow crawl of a pace and may never be back to where we remember it, never. Our generation is just the unlucky generation to be caught up in it. What really sucks is the way we have tryed to get out of it has now put the next couple generations of people in the same position. Were all going to lose our homes and businesses and everything we have worked for all our lives. Prepare yourself because it is going to happen. What a bitch.
Wall Street Journal estimates that the rate is about 17%
Anon 8:37 you are a fool if you cannot see Obama has an agenda to ruin our economy that was his plan from the beginning and he is doing just that. Yes he is the puppet because the powers that be knew they could get an articulate black man elected. Especially with all the illegal votes and dead people voting. That is why Acorn got millions in stimulus money. Pay back for getting Obama elected. His agenda is to ruin our country so he can say the only answer is total government control. He has the banks and credit card companies, he has the car industry, he has the media, and now he want all the health care. Wake up and smell the coffee. He is doing exactly what he had planned to do and people like you are sucking it up and saying give him a chance. It is so appaarent you can't miss it. Just listen to what he says and look at what he is doing. Everything is going as planned to take over our country and make it Socialism or Communism you choose the term. It is still total government control.
Yes 6:33. Obama is the devil. He grew up wanting to be the pasty white dude from the Monopoly game. Can't wait till he gets the hat
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