$1.8 Trillion Budget Deficit

The dollar is toast. How can it not be given the amount of borrowing the Treasury will need to do the next few years. Lately we are seeing a boycott of our auctions by foreigners, the smart buggers they are. So, the Federal Reserve will be the buyer of last resort with magical, created monopoly money (have you noticed that the greenback is starting to sport more colors). Tax reciepts by both states and the federal government are down as much as 30%.-Lou

Budget Deficit to Top $1.8 Trillion

WASHINGTON — With the economy performing worse than hoped, revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year.

The deficit for the current budget year will rise by $89 billion to above $1.8 trillion _ about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama's economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.

As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.

For the current year, the government would borrow 46 cents for every dollar it takes to run the government under the administration's plan. In one of the few positive signs, the actual 2009 deficit is likely to be $250 billion less than predicted because Congress is unlikely to provide another $250 billion in financial bailout money.

The developments come as the White House completes the official release of its $3.6 trillion budget for 2010, adding detail to some of its tax proposals and ideas for producing health care savings. The White House budget is a recommendation to Congress that represents Obama's fiscal and policy vision for the next decade.

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http://www.huffingtonpost.com/2009/05/11/budget-deficit-to-top-18-_n_201579.html