Federal Deficit On Pace For another 1.5 Trillion Dollar Deficit Next Year.

[FaninAma]

And once again revenues went up but spending went up faster.
http://finance.yahoo.com/news/us-government-runs-120-billion-190603163.html;_ylt=AvjoWHuSTZ0gOpT0e6kMurUFuodG;_ ylu=X3oDMTNoY2p2ZWpsBG1pdANGaW5hbmNlIEluZmluaXRlIE Jyb3dzZSBTcGxpdARwa2cDMTE3OTQzNTctOTVhYS0zNmIxLTkz NzItMTY1OTdlOGY3MGMzBHBvcwNsMwRzZWMDbWVkaWFpbmZpbm l0ZWJyb3dzZWxpc3R0ZW1w;_ylg=X3oDMTJubGhubnZxBGludG wDdXMEbGFuZwNlbi11cwRwc3RhaWQDYmIwOWY2YjYtYzdmMS0z ZTUzLTg0ZDUtODI5YTU5YmExOWYzBHBzdGNhdANuZXdzBHB0A3 N0b3J5cGFnZQ--;_ylv=3

Does anybody else think the "deficit reduction" efforts by Congress and Obama will too little too late? There is something extremely ominous and disconcerting about the "What? Me worry?" attitude being shown by the markets and their cheerleaders in the financial press.

[OUinFLA]

it's a Government Bubble

[LiveLaughLove]

Gheitner wants the debt ceiling to be put at unlimited. If the administration is serious about getting spending under control, why would we need a larger or unlimited debt ceiling?

I mean if this doesn't scream, we aren't serious, I don't know what does.

[FaninAma]

The dirty little secret is that most of the increase in GDP(+ some) for the past 12 years has been due to deficit spending not a true increase in value of goods and services. Without the deficit spending of almost 10 trillion dollars we (and the world) would have significantly negative GDP growth. The question is how long can this phoney prosperity continue? I m guessing the can hits the proverbial end of the road next year.

[KABOOKIE]

But but it's all Bush's fault and we can't cut programs that are for the poor and elderly.

[Sooner5030]

Merica's choice:

-continue with the huge deficit spending and get 2% GDP growth but 8% debt growth

or

-fix the deficit problem and cause a calculated recession and hope that the recession doesn't start a feedback loop

This is it....thanks to all the Keynesian d--k sucking Ds & Rs thinking that rescheduling growth from the future is sustainable.

This is 30 years in the making (even more if you look at entitlements) so it will not fix itself quickly or painlessly.

[FaninAma]

Merica's choice:

-continue with the huge deficit spending and get 2% GDP growth but 8% debt growth

or

-fix the deficit problem and cause a calculated recession and hope that the recession doesn't start a feedback loop

This is it....thanks to all the Keynesian d--k sucking Ds & Rs thinking that rescheduling
growth from the future is sustainable.

This is 30 years in the making (even more if you look at entitlements) so it will not fix itself quickly or painlessly.

Exactly. Debt consolidation is part of the normal economic cycle. All the Ivy League educated economists in the Federal government and various central banks around the world have manged to do is delay the inevitable and leverage up the effects.

I actually suspect the real purpose of all the QE programs was to allow a few inside multinational banks to de-leverage as much as they can before the debt bubble totally explodes. They were almost caught flat-footed in 2008 but managed to buy a little time before the the inevitable happens.

[FaninAma]

Tax revenue in October increased by 13% but spending increased by 16.4% from the same month last year. Expect a lot more of the same after the fiscal cliff solution is agreed to.

[SoonerorLater]

Merica's choice:

-continue with the huge deficit spending and get 2% GDP growth but 8% debt growth

or

-fix the deficit problem and cause a calculated recession and hope that the recession doesn't start a feedback loop

This is it....thanks to all the Keynesian d--k sucking Ds & Rs thinking that rescheduling growth from the future is sustainable.

This is 30 years in the making (even more if you look at entitlements) so it will not fix itself quickly or painlessly.

I'm afraid we've reached Morton's Fork. My thought is that the Fed will go with debasing the dollar for as long as they can but we are getting to the point where the Fed is about to overplay their hand. I understand why they do it. They have gotten away with it for so long. I think it will be one of those events that when it starts it will cascade quickly and the dollar slides into the abyss.

[cleller]

Pretty bad situation when the Fiscal Cliff starts to look like the silver lining.