“We Owe How Much?”: Waiting for The Big Splatter
by Gonzalo Lira
Fri, 18 Feb 2011
Last week, a bit of news came out that—weirdly—didn’t garner the attention or the reaction one would have thought it would:
The U.S. Federal government deficit for fiscal year 2011 was revised to $1.645 trillion. That revision was up from the previous estimate of $1.4 trillion, which itself was a revision just a couple-three weeks ago by the Congressional Budget Office from the White House’s earlier projection of $1.267 trillion in December.
The additional $378 billion in deficit spending comes from loss of tax revenue: Both from the fall in tax receipts due to the ongoing depression we’re experiencing, as well as from the idiotic budget deal with the Republicans, whereby the Bush-era tax cuts were extended.
These deficit numbers are huge. Huge. HUGE.