Free Republic

(CNSNews.com) - The federal deficit increased by $146 billion in August, according to a report released today by the Congressional Budget Office. But, at the same time, according to the U.S. Treasury, the federal debt did not increase at all during the month. Total federal receipts were $185 billion during August, according to the CBO, while total federal outlays were $331 billion. Thus, the Treasury was forced to engage in $146 billion in deficit spending. Despite this deficit spending, the Treasury reported that at the close of every single business day in August, the federal debt subject to a legal...

The U.S. dollar may weaken and Treasury yields rise when Asian markets reopen on Monday, though any selling in response to ratings agency S&P's downgrade of the United States is likely to be tempered by the escalating crisis in the euro zone. The S&P cut in the U.S. long-term credit rating by a notch to AA-plus is an unprecedented blow and results from concerns about the nation's budget deficits and climbing debt burden. It called the outlook "negative," signaling another downgrade is possible in the next 12 to 18 months. "The initial reaction will be a high degree of uncertainty...

As PIMCO's Bill Gross notes in this NYT article on zero-percent interest rates, the Fed's ongoing Wall Street bailout is coming at a cost: Anyone who has any cash savings is getting screwed. This includes retirees who did exactly what they were supposed to do--save. Their incomes are now getting clobbered. Meanwhile, for those who prefer to borrow money, the ongoing bailout has created the world's easiest way to make $1 billion. Borrow short-term from the taxpayers and lend the same money back to the taxpayers--and get a guaranteed risk-free spread. Here's Bill Gross: “What the average citizen doesn’t explicitly...