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Budget Deficit Soars, Won't Stop Here

According to figures just release by the Bush administration, the U.S. budget deficit has jumped from $161.5 billion last year to $454.8 billion this year, the highest figure in U.S. history.

The figures were through September, the end of the fiscal year.

Economists predict that the number will climb even higher next year, as the government's various bailout/rescue plans are funded.

The $700 billion Wall Street rescue/bailout plan alone will push the U.S. national debt -- the sum of all deficits since the founding of the nation -- significantly upward.

To accommodate the bailout, the U.S. has raised the statutory ceiling on the debt from $10.6 trillion to $11.3 trillion. It now stands at $10.2 trillion. As you may recall, last week the national debt clock in New York City ran out of digits.

-- Frank Ahrens

By Frank Ahrens  |  October 14, 2008; 4:38 PM ET
Categories:  The Ticker  
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Comments

What's more all these new government borrowings from the US to Europe will suck trillions out of the private money market world wide. And if the people they give this money to don't lend it back out, there could be absolutely no money left for anybody else to borrow.

Brown and Paulson may turn out the big goats next year yet.

Posted by: tom007 | October 14, 1908 4:56 PM | Report abuse

US Government will have to offer Early outs and Buy outs to Federal workers

Posted by: Futurejumps | October 14, 1908 5:02 PM | Report abuse

Remember, deficits don't count. Remember, tax cuts pay for themselves. Remember, deregulation turns loose the engines of capitalism.

What else do these self-deluded nut-cakes on the right want us to remember? Certainly not the bill being presented.

Posted by: Anonymous | October 14, 1908 5:05 PM | Report abuse

I would like to ask Mr. Ahrens if the deficit figures he cites include the cost of the Iraq war? If not, why not? Also, are the deficit figures including surplus revenue from the Social Security trust fund, which is currently running a surplus?
I remember when Bill Clinton first claimed to have balanced the budget and all the Republicans said it was a sham because he was including the social security surplus to balance the books. It took another year to balance the budget without the use of SS surplus funds but he did it and Sec. of the Treasury, Robert Rubin, used the surplus to retire about 80 Billion worth of our debt. That was only 9 years ago. How sad!

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Posted by: NM Moderate | October 14, 1908 5:17 PM | Report abuse

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