Make no mistake, this IS Obama's economy!!!

Budget deficit tops $1 trillion for first time
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer
Mon Jul 13, 6:05 pm ET

WASHINGTON — The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar.

The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor.

The soaring deficit is making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could also force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term.

"These are mind-boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run."

The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to $1.09 trillion. The administration forecasts that the deficit for the entire year will hit $1.84 trillion in October.

Government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent.

Congress already approved a $700 billion financial bailout for banks, automakers and other sectors, and a $787 billion economic stimulus package to try to jump-start a recovery. Outlays through the first nine months of this budget year total $2.67 trillion, up 20.5 percent from the same period a year ago.

There is growing talk among some Obama administration officials that a second round of stimulus may eventually be necessary.
source

There is growing talk among some Obama administration officials that a second round of stimulus may eventually be necessary.

That should push Obama's deficit over 2 trillion.

Only with the Democrats is the answer to an abysmal failure a second one just like it.

Obama and his goons don't care about the economy. It is about power and control thats all they care about. The first stimulus was a demcratic payoff. It was meant to thank the idiots who helped him get elected. The second, if there is a second, will just be more of the same, except you can bit your blue booties, that the second will come with hyper inflation. Yes sir, that change you can beleive in.

Cato