It is always interesting to read the monthly CBO Budget Review.
This month the opening paragraph states:
"The federal budget deficit for the first 11 months of fiscal year 2009 was almost $1.4 trillion, CBO estimates, close to $900 billion greater than the deficit recorded through August 2008. Outlays were $518 billion (or 19 percent) higher and revenues $365 billion (or 16 percent) lower than the amounts recorded during the same period last year. The estimated deficit includes net outlays of $83 billion in support of Fannie Mae and Freddie Mac, although CB O believes that those two government-sponsored enterprises (GSEs) should be considered federal operations and the full scope of their activities should be incorporated into the budget. CBO estimates that spending increases and revenue reductions stemming from the American Recovery and Reinvestment Act of 2009 (ARRA) have totaled more than $150 billion so far this year (excluding the impact on the budget from ARRA’s effects on the economy).
CBO recently issued new estimates of the budget outlook for 2009. Counting Fannie Mae and Freddie Mac in the budget, CBO estimates that the deficit for 2009 would total about $1.6 trillion. If those GSEs are excluded from the budget and only payments to them from the Treasury and associated dividend receipts are counted (as has been the case in the Monthly Treasury Statements thus far), the recorded deficit will be approximately $1.4 trillion..."
That is a $1.6 Trillion deficit! There must be a point when someone shouts STOP. We have been arguing since the beginning of this writing effort that the deficit is a problem and this deficit is just out of control. It is worth the monthly read of this report to see how things are progressing.
This month the opening paragraph states:
"The federal budget deficit for the first 11 months of fiscal year 2009 was almost $1.4 trillion, CBO estimates, close to $900 billion greater than the deficit recorded through August 2008. Outlays were $518 billion (or 19 percent) higher and revenues $365 billion (or 16 percent) lower than the amounts recorded during the same period last year. The estimated deficit includes net outlays of $83 billion in support of Fannie Mae and Freddie Mac, although CB O believes that those two government-sponsored enterprises (GSEs) should be considered federal operations and the full scope of their activities should be incorporated into the budget. CBO estimates that spending increases and revenue reductions stemming from the American Recovery and Reinvestment Act of 2009 (ARRA) have totaled more than $150 billion so far this year (excluding the impact on the budget from ARRA’s effects on the economy).
CBO recently issued new estimates of the budget outlook for 2009. Counting Fannie Mae and Freddie Mac in the budget, CBO estimates that the deficit for 2009 would total about $1.6 trillion. If those GSEs are excluded from the budget and only payments to them from the Treasury and associated dividend receipts are counted (as has been the case in the Monthly Treasury Statements thus far), the recorded deficit will be approximately $1.4 trillion..."
That is a $1.6 Trillion deficit! There must be a point when someone shouts STOP. We have been arguing since the beginning of this writing effort that the deficit is a problem and this deficit is just out of control. It is worth the monthly read of this report to see how things are progressing.
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