US to borrow 46 cents for every dollar spent

AP via Google News ^ | May 11, 2009 | By ANDREW TAYLOR

[Oldeconomybuyer]

WASHINGTON (AP) — The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates. Budget office figures released Monday would add $89 billion to the 2009 red ink — increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.

The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's economic stimulus bill — as well as a seemingly embedded 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.

Just a few days ago, Obama touted an administration plan to cut $17 billion in wasteful or duplicative programs from the budget next year.

[Oldeconomybuyer]

[DonaldC]

The best thing the world can do for us, is to not buy any of our debt...maybe even sell what they have. We are clearly gonna have to learn this the hard way.

[OpusatFR]

Lower your incomes or else pay your work in higher taxes, barter what you need or want, grow your own, and trade within the family for everything.

Oh and always pay attention to the IRS rules on barter.*

*WHFO.

[HiTech RedNeck]

This is one of those WTH moments. How much of that bar is the porkulus?

[Big_Monkey]

With all the talk about "sustainability" the last several years, a first year semester business school student is smart enough that borrowing $.50 for every $1.00 you spend isn't sustainable, at all.

This debt and exponentially ballooning budget deficit will be the end of us all.

[taildragger]

How long can the madness go on, Gov’t having a piece of the action, if not outright control, and wanting more. Debt up to our eyeballs. When does it all collapse?

[don-o]

Words fail.

[allmost]

Good chart. I expect with the current collection of individuals the y-axis is going to need an extension or two within the year.

[WoofDog123]

This is the death of the dollar as a stable currency.

I would not be surprised to see the US dollar’s buying power (not the BS CPI nonsense used to keep COLA’s low) be a third of what it is today in 5 years. We are totally screwed. The treasury is being looted before our very eyes.

Ever wonder how it felt to be alive during some time of great political turbulence? This is it, in slow motion.

Ignoring the economic conditions at the time, I have wondered how ordinary german gentiles felt when it was obvious AH would win the V-Chancellorship in germany, or when it was clear he was going to force Hindenburg out. Those who opposed the party and him were powerless to do anything but watch. Feel familiar?

[Oldeconomybuyer]

Porkulus is $700 billion.

[HiTech RedNeck]

Shoot, without that the trend (to the earlier projection) would be almost linear. Am I the only one who wishes certain necks could be well wrung?

[colorado tanker]

This is gonna make the Carter inflation of the ‘70’s look like nothing. Oh, man, this could be bad.

[willgolfforfood]

These articles NEVER say who it is, with these enormously deep pockets, that is going to lend Uncle Sam all this money, year after year, or what interest rate they plan to charge.

[1010RD]

Ironically, they are actually borrowing the whole thing. Government can only spend what it has first taken out of the economy.

This is a study in insanity (with a heavy dose of power politics) and we are the guinea pigs.

[PubliusMM]

The interest rate that will be required to make this new debt attractive will be an additional burden on coming generations.

The best bet might be that the US fails in its bid to sell that debt...that no one buys any piece of it.

The subsequent inflationary pressure from the Feds cranking up the printing presses to warp speed will be excruciatingly painful for most Americans.

And, that may lead to the collapse that appears to be inevitable. Get it over with; let’s get past this, soon, and start to rebuild.

It’s time to take back the country.

[Pajama Blogger]

Are we not headed for a complete currency collapse? Clinging to guns and religion looking like a smart choice.

[silverleaf]

I agree

Would love to see the Fed in a staredown with the democrat party and TOTUS

[Swing_Thought]

"Then I say, the earth belongs to each of these generations during its course, fully and in its own right. The second generation receives it clear of the debts and incumbrances of the first, the third of the second, and so on. For if the first could charge it with a debt, then the earth would belong to the dead and not to the living generation. Then, no generation can contract debts greater than may be paid during the course of its own existence." --Thomas Jefferson to James Madison, 1789. ME 7:455, Papers 15:393

[silverleaf]

Porkulus was $850 Billion after the Senate loaded it up to get the votes Harry and Nancy needed

Not including debt service costs

[Electric Graffiti]

I hope someone is taking names.....when this mess burns this country to the ground, we need to see a lot these people hanging from lamp posts.