Read the Bills Act Coalition

Thursday, August 13, 2009

The argument for smaller government grows - Federal deficit $1.27T this year, 180.7 billion in July

As the dollar continues to weaken to all time lows, China grows increasingly impatient and with the economy stagnating despite the ill advised stimulus we continue to face a Congress and President unable to see that big government cannot solve our all our wants and needs....this is not the right time for an out of control spending spree by Congress; we cannot keep this pace of spending up and survive for much longer. From the AP:

The federal deficit climbed higher into record territory in July, hitting $1.27 trillion with two months remaining in the budget year…..The Treasury Department said Wednesday that the July deficit totaled $180.7 billion, slightly more than the $177.5 billion economists had expected…..The Obama administration is projecting that when the current budget year ends on Sept. 30, the imbalance will total $1.84 trillion, more than four times last year's record-high….The soaring deficits have raised worries among foreign owners of U.S. Treasury securities including the Chinese, the largest holder of such debt….Massive amounts of government spending to combat the recession and stabilize the U.S. financial system have pushed the deficit higher. …The Treasury Department is auctioning a record $75 billion in debt this week….The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.75 percent from 3.70 percent ahead of the auction results and 3.67 percent late Tuesday. Bond prices jumped Tuesday as stocks fell…..The total public debt now stands at $11.6 trillion. Interest payments on the debt cost $452 billion last year, the largest federal spending category after Medicare-Medicaid, Social Security and defense.

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