Record $220 Billion deficit for one Month

what a shame...makes one wonder where we will be next year the way things are going

I think the dollar will be a lot weaker. We cannot write off hyperinflation as a possibility within the next few years.

The economy is being destroyed and the Obama fanatics will show up and tell you it's Bush's fault. Last night on the news they were listing some of the insane things that the so-call stimulus money went for.

One was a couple of million for a study about whether or no concentrating will make people do better at tasks. Well, duh. Ask a preschooler that one.

I have been one to complain about the insane expenditures for years. When I was younger and complained, people would respond that a few thousand wasn't much in the scheme of things. (To me, it all adds up!) Then as the size of the US budget and deficit grew, complaining about hundreds of thousands for a stupid project was considered "a drop in the bucket". Now that we talk in trillions, I guess a mere million for a project isn't a big deal?

This year's deficit is going to be the size of the entire federal budget we had just 10 years ago or so! And we though it was way to big back then!

I imagine $10 trillion deficits are not to far off. And right after than the dollar will be worthless.

We will want to factor in the new taxes they will put upon us all, to pay for a govt-run managed care fiasco. IF they get too much money to run the program- they will just steal it and do something else to expand the govt.
Managed care is all about saving money, not treatment or lives. When you factor in age, look out!

Yeah. I saw a special that showed how a socialist government would bend over backwards for the young - making sure they have free education through college (and even Masters and PhDs), providing them with free medical care, etc. Then when they got to be over 30, they start to ignore them and concentrate on the young ones. If you're older than dirt or have any medical issues, you're fat out of luck.

HEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEELP!!

FAAAAAAAAAAAAAAAAAAAAAAAAAST!

Ah ha ha ha ha :)

But remember he's only spending because Bush was bad.

Obama is so lucky that the ability of nations/individuals to find a stable currency is almost non existent right now. That has saved the dollar despite his efforts to destroy it. Imagine if the mark still existed?

You are right, they would not be able to get away with this if other countries had sound money. This is unprecedented, and will bring unprecedented worldwide pain. Dark Ages II, anyone?

Yeah, but still the dollar can take only so much more red ink. Those lackluster Treasury sales are showing it might be there now.

I don't think China is going to follow us all the way over the cliff, perhaps there will not be worldwide dark ages. At some point they will unpeg their currency from the dollar.

China is actually in worse shape that many think. Their economy is an export based one with us being their chief market. If we get in much worse shape, their market is curtailed. If that rising middle class in China is stymied economically like they are politically, then there will be trouble. Add joblessness in the lower classes to that and you have war.

They have a high savings rate and the Chinese will start consuming some of their own products. Their biggest problem is how to smoothly transition to this, and how to unload their dollars without wrecking havoc on the world economy. Once they allow the yuan to rise their people will have a lot more purchasing power.

None of these factors are enough to offset the weaknesses of their economy. The savings exist true but governments more liberal (classically so) than China's than China have quickly squandered those if they felt the need.

China's social problems are huge. The male to female imbalance, tremendous peasant class resentment over land issues/education/lack of opportunity, economic reliance on one customer, centrally controlled economy, lack of political representation etc etc. The government there is conducting a balancing act, one misstep will make our problems look minor.

I agree they are far from fully developed. It will still be awhile before they are a superpower, but not as long as I'd like.

They have the human raw material but so do many other nations/peoples.

They are also xenophobic and not a maritime nation-those are additional factors against real economic/military superpower status.

Thanks for posting this to 4 US, World News & Opinions.

Get used to it. There's more to come

Unfortunately, I'm already used to it.

Economic doom awaits us precisely because we are spending ourselves to death.

Actually China's government apparachiks are likely praying to gods they don't believe in that WE get our house in order...

I don't see any political will in Washington DC to do that, unfortunately. Outside of Ron Paul and a few others, that is.

I have to give this administration credit. When it comes to spending they are experts. 220 Billion in one month is a lot more than some administrations went into debt in four years and lost the election because of it.

I think 220 Billion is more that the debt from the Great Depression or WW2.

The next goal for these experts is 220 billion in a week.

In 1940's dollars WWII cost $288 billion to the US. Pretty close...

You're right, Col. This administration knows how to spend money better than any other. And, see? We do know how to give credit where it's due.

Matthew and that 288 billion was the expense for Four years of war.

That's right!

I remember when I was in junior high, 9th grade IIRC. I had a Marine drill instructor as my teacher for social studies. It was late 1981, I was 15, Ronald Reagan became President 10 or 11 months before, the Atari 2600 (VCS) was king although you always had fights with the Intellivision kids, Strawberry Shortcake started her rise along with the Rubik's cube and who can forget "Luke and Laura" on "General Hospital?" I remember my teacher said, "after this class and after school ends for the day, you go home, have dinner and then go to bed. Then you wake up, have breakfast and come to school again and my class." He then asked the question, "OK, how much has the government spent during that time." After taking a few guesses, he revealed the answer, "1 billion dollars."

Those were the days. B-P

BTW, I still see my former teacher ad there were times I helped him in the auto parts store where I work at.

One last thing, in that case, in 1981, we spent $30 billion a month although IIRC, according to the book, "The Simple Solution to Rubik's Cube" at that time, our total national debt was like $500 billion.

Interesting. Now the debt is 25 times bigger, and that does not count unfunded liabilities that are approaching $100 trillion from welfare programs.

We did not vote for the bankers and we did not vote for the generals and we did not vote for the security forces that monitor everything and gather intelligence from other countries so that our corporations can rule the world. The problem is, that we are the part of the world that these people are ruling and it is an international organization.

This is not a democracy. It is an oligopoly. Whether we want it or not, the world is already run by a few who could care less about your welfare and even less than that about the people who have no money.

The problem is that the security forces (those people who claim to control the internet but are unable to prevent the $100 billion a year scammed from citizens) and the international bankers (the people who make up their own rules and charge whatever they want. The people who use your money to make money and get bailed out by you when they screw up) are competing to control the Government that we elect. Think about it. If $100 billion a year is stolen from somebody, that money has to finish up in a bank somewhere, and the banker knows where that money comes from. ie. The banks are in on the fraud.

I have been studying internet fraud for the past year and I have accumulated some interesting facts. Shall I start at the beginning?

I'm not sure what it has to do with February's deficit but I agree it's an oligopoly in control.

If we had an oligopoly in control it would actually be a manageable problem, but the oligopoly is out of control. Nobody is responsible for anything. This is a form of anarchy.

The deficit is the amount of money borrowed from your empty pocket and put into another person's pocket by way of debt financing, and then because of the way that this system has evolved, you are expected to repay this debt to the people who own the money, with interest.

Interest rates cannot remain at zero for long. The devastating interest payments headed our way are truly frightening- they could consume most of the federal budget at some point. This means almost 100% certainty of hyperinflation.

The interest rates are set by the people who own the money. It's only fair, but as the interest rate is increased more money moves from the poor (you) to the people who own the money (the people who own the banks/federal reserve). If the poor do not have the money to pay this interest, they go bankrupt. What is frightening about that?

The really scary part, is when you wake up and discover that your old high school class is running the country.

The problem is that the Federal Reserve sets interest rates, instead of the market. By holding them down too low, they wreck the economy.

The frightening thing is when they try to raise rates to realistic levels, the interest we pay on the national debt will be trillions of dollars each year, now that the debt has grown so fast in our low interest rate environment.

Interest is a positive feedback loop that is responsible for inflation. Because the whole structure is geared for interest, we can not eliminate it unless we are willing to change everything, and to be fair to everyone, a change of that magnitude will have to happen overnight.

Like, tomorrow morning all treasury bonds will be converted into treasury notes. No body will be entitled to collect interest of any kind. Never mind the Grandfather clause. If it is fair for everyone, why should anyone complain? At least then we have a chance of paying off the debt and inflation would be eliminated overnight. The economy will be just fine thank you without a lot of people screwing it around.

I now have a complete record of how the Federal Reserve (a private business), with the help of the IRS using the rule of law, scams $100 billion a year from private citizens. It is real neat.

Where did you get that info? Online?

The $100 billion number has been given to me by the National Security Agency, The FBI and the RCMP. They all keep telling me not to play with the scammers, but I think that they are just talking about scammers who do not benefit the national economy.

I have given up trying to distinguish between official notifications and scams. I believe that anything can be ignored because no one can be faulted for not believing anything that gets posted. No judge can tell the difference, so if officialdom wants to use the internet they can be ignored.

Unless of course they can guarantee that everything on the net is fact.