U.S. government to borrow another $76 billion

Associated Press / SFGate

[RCW2001]

Monday, July 29, 2002
©2002 Associated Press

URL: http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2002/07/29/financial1647EDT0254.DTL

(07-29) 13:47 PDT WASHINGTON (AP) --

The government, reacting to a worsening financial picture, said Monday that it plans to tap $76 billion from the credit markets this quarter to compensate for lower income-tax payments and increased spending.

The Treasury Department's new borrowing estimate for the July-September quarter is bigger than the $55 billion borrowing estimate it made in April. The $76 billion would represent the most borrowing to take place in the third quarter since $103.5 billion in 1991.

In the second quarter, Treasury tapped $15 billion from the credit markets, much more than the $1 billion estimated in April. The $15 billion marked the most borrowing by the government in the second quarter since $25 billion in 1995. The increase in borrowing was primarily the result of lower tax receipts.

The Bush administration expects the government will run a $165 billion deficit in the 2002 budget year, ending Sept. 30. That would be the first red ink in four years, and $59 billion worse than the administration estimated in February.

The administration has blamed the return of deficits on last year's recession and the costs of waging war in Afghanistan and battling terrorism at home. Democrats say it was caused by the 10-year, $1.35 trillion tax cut that Bush pushed through Congress in the spring.

For the first nine months of the budget year, the government is running a deficit of $118 billion, a reversal from the sizable surplus recorded for the same period a year earlier.

Revenues from individual income-tax payments so far this budget year totals $643.3 billion, a 19.6 percent drop from the same period last year. Revenues from corporate tax payments are down 15.9 percent to $115.9 billion.

©2002 Associated Press  

[dead]

Oh what the hell, I guess they're good for it.

Just make them put up the Grand Canyon and the Space Shuttle as collateral.

[Tourist Guy]

>>>>it plans to tap $76 billion from the credit markets this quarter to compensate for lower income-tax payments and increased spending.<<<<

Oh sure, blame it on US!....

[Boonie Rat]

The Outstanding Public Debt as of 29 Jul 2002 at 09:12:35 PM GMT is:

The estimated population of the United States is 287,918,639 so each citizen's share of this debt is $21,345.02.

The National Debt has continued to increase an average of $1,111 million per day since September 28, 2001!

BOHICA!!!

Boonie Rat

MACV SOCOM, PhuBai/Hue '65-'66

[Right_in_Virginia]

"The government...plans to tap $76 billion from the credit markets this quarter..."

I'm pretty uninformed about high finance....so can someone tell me what percent of GNP this represents?

Many thanks.

[ex-snook]

Someone is using 'selective accouting'. The deficit increase did not start with 9/11.

Current Amount 07/26/2002 $6,150,620,096,273.10

09/28/2001 $5,807,463,412,200.06

[SteamshipTime]

It's worse than you think: $33 trillion and counting.

[SteamshipTime]

Try cancelling it and see what happens.

[Weimdog]

"For the first nine months of the budget year, the government is running a deficit of $118 billion, a reversal from the sizable surplus recorded for the same period a year earlier."

THERE NEVER WAS A SURPLUS!

The government uses the same kooky accounting practices the bureaucrats are railing against.

I wonder how much money could be saved by having all state and federal employees take a mandatory week off without pay every month?

[Moonman62]

The government, reacting to a worsening financial picture, said Monday that it plans to tap $76 billion from the credit markets this quarter to compensate for lower income-tax payments and increased spending.

I guess the Bush strategy of downplaying the importance of investing, while subsidizing selected industries in exchange for votes isn't working out as planned.

[john in missouri]

I'm not sure I agree with their doing this. I feel like, $100 billion here, $100 billion there, pretty soon we'll be talking some real money.

[henderson field]

I would have thought that the government windfall due to not allowing most of the stock market losses (they're in IRAs and 401Ks, where you can't declare the losses) would have made it unnecessary to borrow more money. This is separate and apart from the windfall at local levels due to increases in property taxes as real estate prices rose because of immigration.

[DJ Frisat]

"Kooky" sounds so whimsical. Deceptive, fraudulent, criminal, immoral -- those are more fitting descriptions.

[exnavy]

WoW can you believe the audacity of the politicos of America, that BOHICA term takes me back!

[Weimdog]

Kooky was a little light, I guess I'm a bit "punchy" from working so hard and having the government stealing most of what I make. I stand corrected :)

[185JHP]

I know where 31B can be obtained - the "Earned Income" (sic) Tax Credit program. The huge benefit of not paying income tax is enough of a benefit - if not too much of one.

[Inspector Harry Callahan]

Bttt

[Brian Allen]

Factor in the Social Security and Medicare Ponzi Scam liabilities and the debt leaps to Thirty Five Trillion Dollars.

Then factor in such other scams as the student loans that are never repaid; the ExIm "bank" scams that are never repaid and all of the other feral gummint "loan guarantees" [Fannie Mae's Hundreds of Billions spring to mind] that are going to be paid out on your behalf [All of these liabilities are in the plus side of feral gummint accounts] -- and the actual "national debt" most certainly exceeds Fifty Trillion Dollars.

And is growning even faster than it is being chased down by that most insidiously-manipulated form of taxation -- Inflation.

Counterfeiting by any other name. The deliberate increase in the supply of money, creation of credit and debasing of the currency that is currently running at a rate that sees the value of a United States of America Dollar halved every five years!

[Sungirl]

The administration has blamed the return of deficits on last year's recession and the costs of waging war in Afghanistan and battling terrorism at home

Oh...is this why?? Good that means we can continue to give MORE MONEY to OTHER COUNTRIES for the hell of it. Whats 50 million here and there....
IN fact..lets just forgive all the debts from what they owe us too!