Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Fed budget deficit for October: $176.36 billion

UPDATED at 5:40 p.m.:

The federal budget deficit for October rose more than expected to $176.36 billion, the government announced moments ago, up from $155.53 billion in October 2008.

This is the largest October deficit on record. It is the first month of fiscal 2010.

The total national debt -- the sum of all deficits from the beginning of the republic until today -- is now up to nearly $12 trillion.

A healthy economy should not have a deficit that's more than about 3 percent of its GDP. Even with a GDP that's gone positive in the third quarter, the U.S. deficit now projects out to about 11 to 12 percent of GDP. And that's scary.

Here's what's scarier: Tax receipts to the government were down 18 percent compared to October of last year, obviously because of the recession. So you've got rising spending and falling revenue. Not only is that a recipe for disaster, it's a recipe for falling public approval ratings for the White House. There is one group that it benefits, however: Republicans seeking seats in the mid-term elections next year.

The deficit news comes the same day that the Wall Street Journal is reporting that the White House is considering spending unused bailout money to pay down the deficit, in a story co-bylined by my former Post colleague, Jonathan Weisman.

But think about this for a minute: The bailout was not a big pile of unused cash sitting around waiting to be spent. It was new money that came from bond sales, which added to the national debt. Now, the White House is thinking about using some of that money to pay down the debt -- that it created!

Or, here's another analogy: using one credit card to pay off another.

I e-mailed Dave Walker to see what he thought about this idea. Walker, you may recall, is the former U.S. Comptroller, who was so worried about the rising national debt (and yearly deficits) that he quit his job to spread the danger warnings. Last year, he starred in a documentary called "I.O.U.S.A.," about the debt, which you can see a chunk of by clicking here.

Walker e-mailed back, saying: "If we don't need the money we shouldn't spend the money." In other words, if the rest of the bailout has not been spent, it shouldn't be spent.

Using the unused bailout money to try to pay down the debt, Walker added: "Would mean not adding more debt but it wouldn't reduce existing debt." Exactly. (You can see an interview I recently did with Walker for The Post's Outlook section by clicking here.

And it's not just evangelists like Walker who worry about the rising deficit and debt. In a town hall meeting today on CNBC, Warren Buffett and Bill Gates both expressed concern about the big bill that's coming due for future U.S. taxpayers.

-- Frank Ahrens
Sign up to get The Ticker on Twitter

By Frank Ahrens  |  November 12, 2009; 5:40 PM ET
Categories:  The Ticker  | Tags: GDP, deficit, national debt  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Housing crash, teens drive Hispanic unemployment above national average
Next: Stocks open slightly up

Comments

Heck of a job, Barry.

Posted by: Jerzy | November 12, 2009 2:58 PM | Report abuse

Let’s push for a payroll holiday as a part of the presidents business summit. This could be used as a case study for introducing consumption tax into the US system. This will be the only way out of our debt without 50%+ taxes. How do we pay for it? With excess TARP funds. It’s our money anyway….give it back!! Let’s make March 2010 a Federal Tax Free Month. It will not be exactly as the Fair Tax would work but it would be a great start. The US consumer, taxpayer and corporations would all benefit.

Posted by: anthonykallen | November 12, 2009 3:14 PM | Report abuse

obama continues to destroy the usa economy

record budget deficits

and he still wants more with obamacare

but the most important statistic is that

6 americans are lookig for a job

for every single job opening

because of

depression obama you can NOT get a job

Posted by: ProCounsel | November 12, 2009 3:20 PM | Report abuse

Let's see. How could the U.S. Government be running a deficit? Oh, yeah. A years long tax holiday for the wealthiest Americans, a war against Saddam Hussein that turned out to be lengthier, messier, and more NOT necessary than anticipated, another war against mountainous, rocky, corrupt Afghanistan, where al Qaeda used to be, and tax receipts down because Bush and Cheney's good buddies couldn't resist packaging fraudulent mortgages into derivatives, fraudulently marked BEST QUALITY, and insured against loss by people whose economic models assured them there would be no losses and so no need back up the insurance with cold, hard private cash, resulting in Government bailouts to too-big-to-fail non-government businesses, or else Great Depression II. Right Wing Authoritarians blame nobody except people who have been in office since January 2009, because they forget.

Posted by: BlueTwo1 | November 12, 2009 3:21 PM | Report abuse

Thank you Barack and Nancy. Maybe we, the loyal stupid sheep, have some more destruction and despair?

Posted by: RobParker | November 12, 2009 3:22 PM | Report abuse


WOW DID YOU SEE THE ONE MONTH DEFICIT FOR OBAMA ----- OCTOBER 176.4 BILLION!!!!


ANNUALIZED THAT IS A COOL 2.1 TRILLION DOLLARS A YEAR!!!

GOOD JOB BARRY BOY!!!! BALANCED BUDGET FOR SURE!!!


AND NO NEW JOBS!! WHAT’S ALL THAT MONEY FOR BARRY BOY??? STIMULUS???

502000 LOST THIS WEEK!!

GOVERNMENT OVER SPENDS 176.4 BILLION IN ONE MONTH, AND THIS NATION LOSES 2 MILLION PLUS JOBS IN ONE MONTH!!

"THE CHANGE WE CAN BELIEVE IN"!!!!

MORE GOVERNMENT STIMULATION BARRY BOY!!

I THINK SPITZER’S 4,000 DOLLAR STIMULUS WORKED MUCH BETTER – HE KEPT ALL THE ESCORT GIRLS WORKING!!


Posted by: jjcrocket2 | November 12, 2009 3:28 PM | Report abuse

Yea Baby!!!!!!!!

Odumbo has done a wonderful job. Somone better remove him before it's to late.

Posted by: askgees | November 12, 2009 3:35 PM | Report abuse

Obama...what a disaster!
The Stimulus was for NOTHING.

Posted by: Revcain777 | November 12, 2009 3:43 PM | Report abuse

Let's see. How could the U.S. Government be running a deficit? Oh, yeah. A years long tax holiday for the wealthiest Americans, a war against Saddam Hussein that turned out to be lengthier, messier, and more NOT necessary than anticipated, another war against mountainous, rocky, corrupt Afghanistan, where al Qaeda used to be, and tax receipts down because Bush and Cheney's good buddies couldn't resist packaging fraudulent mortgages into derivatives, fraudulently marked BEST QUALITY, and insured against loss by people whose economic models assured them there would be no losses and so no need back up the insurance with cold, hard private cash, resulting in Government bailouts to too-big-to-fail non-government businesses, or else Great Depression II. Right Wing Authoritarians blame nobody except people who have been in office since January 2009, because they forget.

Posted by: BlueTwo1 | November 12, 2009 3:21 PM


There’s always an idi0t crying that the tax break for the wealthy hurt the economy. Sorry but the sad fact is, dead beats like you are the one's responsible. It's not the wealthiest people’s responsibility to take of the trash. But on a positive note Obama will force the bottom feeders to pay their share. According to this nitw1t of a President he even feels jail time is acceptable for those that refuse to sign onto the Gov. healthcare disaster stating that no one should have the ability to force others to take care of them????. Hey ODUMBO. If you implement that policy TODAY and forced those feeding off of the public teat to pay their fair share we wouldn’t need this hack job of a bill. You could have saved you're self a lot of work. The stup1dity of this man is unbelievable.

It's called the Barry shuffle. 1 step forward 3 steps back.

Posted by: askgees | November 12, 2009 3:46 PM | Report abuse

Bad now. Worse later. Buy gold and real estate. Short long term treasuries. Buy South Africak k-rands.

Posted by: g0tcha | November 12, 2009 3:47 PM | Report abuse

Wow - that's $1 billion an hour. Wonder how long we can keep this up before the whole thing collapses. Hopefully we will all be dead by the time our grandkids have to figure out how to repay the trillions.

Posted by: mr_bill_10 | November 12, 2009 3:57 PM | Report abuse

45% Now Rate Obama's Economic Performance As Poor

Forty-five percent (45%) of U.S. voters now give President Obama poor marks for his handling of the economy, the highest level of disapproval this year.

==========================================

Obozo the clown has my vote as worst POTUS yet. He even is worse than Jimmy Carter.

Posted by: charlietuna666 | November 12, 2009 3:58 PM | Report abuse

I suppose we should have let the economy collapse and decline somewhere around 20% GDP in 2009 so we wouldn't have to bail out the culprits who caused it.

Then our debtors would have lost confidence in the US and cashed in the chips. We were F'ed big time before Nov 4th, 2008. This is going to take a long while and finally FINALLY require sacrifice from all Americans to get us back on track.

The answer is not more tax cuts. A tax holiday maybe; a VAT would be even nicer. Yes taxes for the richest Americans should go over 50%.

Posted by: theobserver4 | November 12, 2009 4:04 PM | Report abuse

Mmm mmm mm! Barack Hussein Obama.

Posted by: seraphina | November 12, 2009 4:12 PM | Report abuse

IS there any way we can get rid of all the happy spenders and giveawayers in congress and start with a bunch of fresh, honest citizen representatives? Wouldn't be a bad idea to clean out the white house while we are at it.

Posted by: GordonShumway | November 12, 2009 4:22 PM | Report abuse

Posted by: BlueTwo1 | November 12, 2009 3:21 PM

Spoken like a true left wing liberal.

Even when you are in power, you are still a victim and it's all someone else's fault.

Posted by: p1funk | November 12, 2009 4:24 PM | Report abuse

@GordonShumwa

You are correct, even when they are in charge, they are helpless to get anything done.

Posted by: mike83631 | November 12, 2009 4:28 PM | Report abuse

Why dont we just go to war with China, and drop a couple of h-bombs on them. That way we can make them wipe out our debt, and then make them pay us for helping to rebuild their country again. What..I am just saying...it seemed to worked after WW2...something to think about!!

Posted by: sanmateo1850 | November 12, 2009 4:29 PM | Report abuse

The President is cutting CEO's pay because of poor job performance. Why is it that the Congress and Senate have gone without a pay cut and benefit cut? I believe when a group of grown men get elected to office and act like a bunch of babies they should be held accountable. Cut all of their pay and as they do something to merit a pay raise, then give it to them.

Posted by: racam | November 12, 2009 4:36 PM | Report abuse

Are forgeting that this is Bush's faul? I mean it was his fault that dinasours went extinct too, isn't it.

Obama: Debt we can believe in.

Posted by: Fontana1 | November 12, 2009 4:38 PM | Report abuse

...well, there's not much BO can do except "keep the pedal to the metal"... and, if he's truly religious, pray. This spending spree and the devastating deficits were started by Bush-Cheney and their Gang of UnPatriots (Wolfowitz, Feith, Rove, Rumsfeld, Rice, Powell, Ashcroft, etc). They bought us into two unwinnable, unnecessary wars, huge tax breaks for their already obscenely wealthy friends, and bailouts of the Pirates of Wall Street.

If wrecking the U.S. economy, engaging the U.S. military on a semi-permanent basis in the Middle East on behalf of Israel, concentrating even more wealth into fewer hands, and crapping on the U.S. image and prestige throughout the world were the goals of Bush-Cheney and their Gang of Unpatriots, then we have to heartily agree: Mission Accomplished!

BO is just more of same. For all those who aren't among the wealthiest 2% or sucking that big gov tit in perpetuity: Enjoy your sh*tt sandwich, compliments of Pubs and Dems alike...

Posted by: srb2 | November 12, 2009 4:40 PM | Report abuse

Thank you Mr President! your goal to collapse
The american Economy is working for you and
congress But not for America People.
But I have no fear for you will not be re-elected 2012

Posted by: akeegan2 | November 12, 2009 4:42 PM | Report abuse

I am curious all the whiners about deficits. What do youthink he should do cut taxes? Which means no national defense, cut taxes, which means no vaccines, cut taxes, no money for educational loans, cut taxes, no agriculture, cut taxes, no environmental solutions, cut taxes no energy solutions, cut taxes no law enforcement , homeland security, no Fema, cut taxes, no trading, and cut taxes, the rich will continue to not trickle their wealth down to the rest of us. Okay, lets say he did nothing and let nature takes it course, you people would still complain............

You want him to send troops to Aghan and that cost billions. Its unbelievable how neo cons stress fiscal responsibility but never practice it.

Posted by: Sincear2021 | November 12, 2009 4:44 PM | Report abuse

I am curious all the whiners about deficits. What do youthink he should do cut taxes? Which means no national defense, cut taxes, which means no vaccines, cut taxes, no money for educational loans, cut taxes, no agriculture, cut taxes, no environmental solutions, cut taxes no energy solutions, cut taxes no law enforcement , homeland security, no Fema, cut taxes, no trading, and cut taxes, the rich will continue to not trickle their wealth down to the rest of us. Okay, lets say he did nothing and let nature takes it course, you people would still complain............

Posted by: Sincear2021 | November 12, 2009 4:45 PM | Report abuse

Thanks alot shrub & HalliBush, Inc. It's going to take quite a while to undo what you greedy little bast*rds did to this country. Your dittohead lemmings are running around like confused schoolgirls blaming Obama for your failures. Can the retardikan party become even more hysterical?

And to top it off, the hole in "the dick" cheney's head is making noise again... somebody stuff a sock in it and put him back in the closet.

Posted by: 4Jaxon | November 12, 2009 4:54 PM | Report abuse

What is more surprising; the increase in the projected deficit or the fact that they released this information on Thursday instead of the usual Friday afternoon burial spot? Did someone screw up?

Posted by: menopausequeen | November 12, 2009 4:55 PM | Report abuse

After Obama tripled the 2009 deficit I guess we shouldn't be too surprised, but he and his Democratic cronies are going to bankrupt this country and leave our children paying "European" tax rates fro decades to right his wrong.

Posted by: Realist20 | November 12, 2009 4:59 PM | Report abuse

Just a warm up. Wait'll you see next year when the commercial real estate time bomb goes off.

We'll hear the gurgling sound of big banks going down the drain with all this previous bail out money. Another bigger heist is coming.

Posted by: bandcyuk | November 12, 2009 5:00 PM | Report abuse

As I read through the comments, I am amazed at the right wing haters whose memory started with Obama was elected. What a bunch of loosers and sorry political hacks. The retardikan party is doing their best to continue with their divisive and hateful tactics. Traitors.

Posted by: 4Jaxon | November 12, 2009 5:01 PM | Report abuse

What we have here is one right wingnut writing all these anti-Obama posts... maybe a couple... kind of in the 'ol karl rove vein... take up all the space with dittohead lemming-speak...

Posted by: 4Jaxon | November 12, 2009 5:03 PM | Report abuse

Who cares about the Federal Deficit. (I don't) The Federal Government controls the power to create money. If it pays off a $1.00 loan with money worth only 50 cents - so what??? If it pays back only 5 cents for every dollar borrowed - who cares???

Posted by: dghyson1 | November 12, 2009 5:09 PM | Report abuse

I want not one single solitary penny raised in any consumption tax whatsoever anywhere in this country without first the top 1% paying considerably more than it does---not one single cent. On this issue hinge all votes I shall cast in any future elections until I'm dead.

Posted by: BigBadDog | November 12, 2009 5:11 PM | Report abuse

I love how the poor ignorant "conservatives" get on websites like this and start calling the POTUS (and anyone else who disagrees with them) names. When you do that, you sound like the childish simpletons you must be. You are aware, are you not, that your neo-con ways have done nothing, I repeat nothing, but add to the US deficit? Oh yes, it all started with your idol worship of Reagan who left office with a $200+Billion deficit, then comes Bush I who leaves office with another $300 Billion in deficits, then comes the Democrat...oh, oops, that one actually left office with a surplus of $200 Billion. Not to be outdone, the poster child for fiscal and moral bankruptcy, Bush II, leaves office with the economy in ruins and a staggering $482 Billion deficit.
But you baby thinkers seem to have concluded in your unbelieveable ignorance, that the current economic situation is the result of Obama and his less than one year in office.
I thought you guys always get your chests all puffed up with sanctimonious indignation whenever you perceive someone isn't handling their own responsibility the way you would? Where was this indignation when your party was leaving deficits? Where were you when EVERY SINGLE REPUBLICAN President left a HUGE deficit? Where were you?
So go ahead and call the POTUS childish names. Go ahead and use your Ouija Board or chrystal ball or whatever it is you use to predict the ultimate failure of the US. Meanwhile, true Americans, will go about their business of acting like adults and trying to get things rolling again.
Now here's your "bankie" and your "sucker" time for little minds to be sleeping.

Posted by: mcalvinlaw | November 12, 2009 5:25 PM | Report abuse

Obozo the clown has my vote as worst POTUS yet. He even is worse than Jimmy Carter.

Posted by: charlietuna666

...Even worse that George W Bush? IMPOSSIBLE!

Posted by: mcalvinlaw | November 12, 2009 5:36 PM | Report abuse

A billion here a billion there pretty soon we are talking about serious money.

Posted by: affirmativeactionpresident | November 12, 2009 5:38 PM | Report abuse

More than 10% of the US federal budget deficit created since the beginning of the US through today has been created in 10 months by Barack Obama.

Where is the balanced budget and the reductions in the deficit that he promised?

Posted by: mike85 | November 12, 2009 5:44 PM | Report abuse

obama continues to destroy the usa economy
record budget deficits
and he still wants more with obamacare
but the most important statistic is that
6 americans are lookig for a job
for every single job opening
because of
depression obama you can NOT get a job

Posted by: ProCounsel | November 12, 2009 3:20 PM
======================================

A DUDE that Voted TWICE for BUSH is complaining??

DUDE this is deficit is your fault.

ISA

Posted by: Issa1 | November 12, 2009 5:46 PM | Report abuse

nice job, white folks.....Are you proud of yourself still for electing this guy who is destroying our economy and has absolutely no clue about how to fix it? Did it make you feel better to vote for a black person? How do you feel now?

Posted by: msg8568 | November 12, 2009 5:55 PM | Report abuse

Facts:
Two invasions both put on credit cards.
Prescription drug plan?. not paid for.
Tax cuts for the rich?. No job creation.
Total collapse of Wall Street and the Banking system, warning signs ignored by everyone with a heartbeat living in Washington or pontifacting on Cable.
The American people who mortgaged their homes for cash, demolished them and built an ugly McMansion.
The following are the facts.
The American economy is 70 percent consumer spending. The last eight years consumer spending was based on borrowing, debt the American consumer could not pay back.
Unless you are a CEO or work on wall street your wages have dropped.
The question is really simple, "how can Americans keep on spending when they don't have the money?. How can the working stiffs continue to be 70 percent of the American economy?.

Posted by: JillCalifornia | November 12, 2009 5:59 PM | Report abuse

DUDE this is deficit is your fault.

ISA

Posted by: Issa1
________________________________________

How are all those entitlement programs that are financial burdens and created by liberals, Bush's fault? If he had cut or reduced them you libs would be calling a hater of the poor or a racist.

Still waiting for the day you stop acting like a man-child Isa!

Posted by: cschotta1 | November 12, 2009 6:21 PM | Report abuse

I like how the deeply stupid crowd blames the Bush Administration but conveniently fails to mention that the Dems have been in charge of Congress since 2006 and the Teleprompter has been in office for 11 Months already...

Bottom line is the empty suits in Congress on BOTH sides and the Administration of BOTH Dems and Reps. caused this. But really it's not their fault, it's ours. Here's a a couple of ideas:

1. Dems - Stop asking for the Government to do more. We can't afford it, and they are too incompetent to handle it. Consider trying self-sufficiency, personal responsibility, you know, those sort of things.

2. Reps. - Stop asking for Tax breaks, at least temporarily until we get out of this mess. We can't afford them right now.

And for EVERYONE, stop pushing the insane Health Care crap that will no NOTHING to get us out of debt.

Posted by: websterr1 | November 12, 2009 7:04 PM | Report abuse

expected ! Are they riding in a turnip truck ?.....

Posted by: UpAndOver | November 12, 2009 7:12 PM | Report abuse

Its scary. Obummer is making Joe Biden look smart !!

Posted by: obamanation2 | November 12, 2009 7:39 PM | Report abuse

Its scary. Obummer is making Joe Biden look smart !!

Posted by: obamanation2 | November 12, 2009 7:39 PM | Report abuse

I detect another summit!

Posted by: cschotta1 | November 12, 2009 7:49 PM | Report abuse

1. The International Conservatism Movement is the only true vision for America. Fiscal conservatism is the real answer to a growing cluster of budget deficits. If we continue on this course, expect the Obama Administration to start bailing out more companies who are spindled and lockdown to the United States Treasury.
2. Lastly, the national health care plan is an over-tax scandle by President Obama and Congress. Letting health care providers' ATM this country into further debt is what this socialistic infrastructure will bare on the American Workforce. The weight of a national health care plan on the American Workforce and our Micro-business Community extends the continued state of economic depression. Wrapping up the United States in an unraveled debt breaches our economic national security posture. The United States of America can be called a clustered of hinged states because the federal government inability to show fiscal constraints. And as result, this country can be deemed a territorial nation. We must now ask President Obama and Congress who do you represent?

Note: Macro-Economics is a tired and failed pattern of business principles that has destroyed the quality of life in America. Capitalism and micro-economics is the only deliverance for a demoralized and devalued people. Let President Obama and Congress hear the lions' roar.

Antonio the Sun

Posted by: sterlinggo1 | November 12, 2009 8:30 PM | Report abuse

This would be a good time for everyone in Congress and the President to take a month off and take a course in economics at Stanford, MIT, or the University of Chicago. Since they want to run the economy, they should at least learn some of the basics of economics.

Posted by: jazbond007 | November 12, 2009 9:10 PM | Report abuse

"..This is the largest October deficit on record."
The total national debt...is now up to nearly $12 trillion.."

This imbalance is already eroding the value of our money and we are digging a deeper hole with each passing year.

We are paying a huge portion of our national budget toward interest payments and servicing debt.

It's comparabale to a person with an overextended credit card who just keeps spending and never gets the balance paid down.

What we are doing now is simply unsustainable.

Posted by: chicago77 | November 12, 2009 9:24 PM | Report abuse

i was told if we hoped for change enough everything would magically work out...

was barak obama not being truthful?

Posted by: fred100012003 | November 12, 2009 10:35 PM | Report abuse

If it doesn't work for a business, get rid of it. We got socialism, for the wealthy. It's destroying wealth. It will all work out. Junk is still junk. It is getting difficult to find a shoe repair shop. People just throw the shoes out. $176 B buys lots of shoes. You still have to pay for your own shoe repairs.

Posted by: Dermitt | November 13, 2009 1:28 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company