Yep: Federal deficit officially tops $1 trillion for the fourth time

posted at 3:21 pm on September 11, 2012 by Erika Johnsen

Just in case there was any doubt in anyone’s mind — the Congressional Budget Office has released their monthly report, and with the government’s fiscal year set to end on September 30th, they’ve officially announced that we’ll come in with an above-trillion dollar deficit for the fourth year running. Looks like $1.17 trillion will be the final tally, reports the WashTimes:

The $192 billion deficit was the worst August on record, though the total deficit so far this year is actually lower than it was in 2011, when it stood at $1.23 trillion after 11 months.

CBO said rising wages have brought more tax revenue into the government this year, while new spending has risen at a slightly lower pace, which explains the declining deficit. Spending on Medicaid and unemployment benefits both dropped as heightened stimulus spending ended, and lower costs for the wars in Afghanistan and Iraq also have meant less spending on defense.

But Social Security is up 6 percent and Medicare spending is up 4 percent compared with 2011, CBO said. …

But CBO in a report last month predicted the government will flirt with yet another trillion-dollar shortfall next year.

Oy vey. If we don’t initiate a plan to reduce our debt-to-GDP ratio on the double, it looks like we’re on the path toward another credit downgrade. Standard & Poor’s downgraded the United States’ credit rating from AAA for the first time ever last year following the dysfunctional debt-ceiling debate, and now Moody’s Investor Services is warning that unless we come up with a credible plan to get back on the fiscal wagon soon, they’ll do the same:

Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government’s Aaa rating and negative outlook, says Moody’s Investors Service in the report “Update of the Outlook for the US Government Debt Rating.”

If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody’s.

If those negotiations fail to produce such policies, however, Moody’s would expect to lower the rating, probably to Aa1.

Despite President Obama’s assurances that all that deplorable partisan gridlock will subside upon the event of a second term (as those spiteful Republicans will no longer be focused on thwarting his reelection, or something), I’m somehow not infused with confidence about his leadership abilities, nor his political will to do anything meaningful about the problem — seeing as how it’s his presidency that’s produced nonstop trillion-dollar-plus deficits. Blergh.


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I can’t wait to mosey up to a cashier with a wheelbarrow full of money, for some of that Wonder bread.

Problem is … I have neither a wheelbarrow, nor the money to fill it up with.

Oh well … all must suffer in Utopia.

OhEssYouCowboys on September 11, 2012 at 3:24 PM

Yep: Federal deficit officially tops $1 trillion for the fourth time

Meh, a trillion here, a trillion there, and pretty soon you’re talking about monopoly money.

hawkeye54 on September 11, 2012 at 3:24 PM

And in other news, the White House is tinkering with their beer recipe for a fall lager. Also, President God-King be releasing his golf scores soon?

Issues…issues.

MTF on September 11, 2012 at 3:24 PM

Romney had so much ammunition I wonder why he doesn’t use it.

mrscullen on September 11, 2012 at 3:25 PM

“Don’t tell Obama what goes after trillion.” –Sarah Palin

Archivarix on September 11, 2012 at 3:26 PM

Socialist Spending Spree

faraway on September 11, 2012 at 3:27 PM

Obviously nothing will happen before the election. They may pass some type of stop-gap measure during a lame duck session to buy themselves more time, but for the most part the politicians will have a 10-month window from January to November 2013 to work out some kind of deal. Probably a combination of tax increases and spending cuts.

TouchdownBuddha on September 11, 2012 at 3:27 PM

when you spread the wealth misery around, it’s good for everyone
-the choomer

RedInMD on September 11, 2012 at 3:29 PM

Romney had so much ammunition I wonder why he doesn’t use it.

mrscullen on September 11, 2012 at 3:25 PM

Romney would have amunition if he disagreed with Obama’s policies. I think he honestly thinks Obama is just simply in over his head…

astonerii on September 11, 2012 at 3:33 PM

“Don’t tell Obama what goes after trillion.” –Sarah Palin

The fall of the Republic.

hawkeye54 on September 11, 2012 at 3:34 PM

Ginger Dollars, here we come. Good times.

Bishop on September 11, 2012 at 3:34 PM

One man’s refuse is another man’s Investment.

FlaMurph on September 11, 2012 at 3:35 PM

http://www.americanthinker.com/blog/2012/09/bob_woodward_inadvertently_confirms_the_coming_economic_apocalypse.html

The problem. Romney will not fix it. Right now the entire burden of keeping the United States from Defaulting is the incestuous relationship between the treasury, the Big Banks and the federal reserve. Treasury issues bonds which are bought by big institutions, those institutions know that they can turn an immediate profit by then selling them to the FED, the institutions now have money to borrow more from the Treasury… I big old circle jerk. Ryan says we can keep this up for two full more Generations and pass the crisis onto someone else. OUR KIDS! Who wants to support him? Raise your hands.

astonerii on September 11, 2012 at 3:38 PM

It would have been higher, but mo hasn’t had a vacation in months!
L

letget on September 11, 2012 at 3:41 PM

Now Moody’s Investor Services is warning that unless we come up with a credible plan to get back on the fiscal wagon soon, they’ll do the same.

Need I remind everyone that the original cause of the Standard & Poor’s downgrade was the regime’s trying to “Spread the wealth around” and according to Bob Woodward Book’s the scotching of the budget deal last year by our El Presidente himself.

Chip on September 11, 2012 at 3:41 PM

Romney had so much ammunition I wonder why he doesn’t use it.

mrscullen on September 11, 2012 at 3:25 PM

Really.

Laura Ingrahams take.

Steveangell on September 11, 2012 at 3:43 PM

Romney had so much ammunition I wonder why he doesn’t use it.

mrscullen on September 11, 2012 at 3:25 PM

How extensively is the press covering all of his appearances?

/yeah, that’s a problem. MSM, leg-humping the president instead of doing their @#$% job.

AZfederalist on September 11, 2012 at 3:43 PM

Don’t worry America, you’ll always be AAA to me!

–Barack Obama

Conservative in NOVA on September 11, 2012 at 3:46 PM

How extensively is the press covering all of his appearances?

/yeah, that’s a problem. MSM, leg-humping the president instead of doing their @#$% job.

AZfederalist on September 11, 2012 at 3:43 PM

Blaming a dog for being a dog is pretty pointless. It is not like this was unexpected.

astonerii on September 11, 2012 at 3:46 PM

MSM, leg-humping the president instead of doing their @#$% job.

Their lips are permanently attached to his backside.

hawkeye54 on September 11, 2012 at 3:47 PM

All you conservative doofusses have to admit = obama really does excel at something. When he does deficit spending, he does it better than anyone in history. However, since dirty harry reid is really resopnsible for this, I don’t see why he lets obama take the credit. The people of nevada excel at living on other peoples’ money, and dirty harry should be made their king for what he has done.

Old Country Boy on September 11, 2012 at 3:47 PM

Romney actually leads in the polls if they were not skewed. Why doesn’t Laura get that?

jazzmo on September 11, 2012 at 3:49 PM

http://www.americanthinker.com/blog/2012/09/bob_woodward_inadvertently_confirms_the_coming_economic_apocalypse.html

The problem. Romney will not fix it. Right now the entire burden of keeping the United States from Defaulting is the incestuous relationship between the treasury, the Big Banks and the federal reserve. Treasury issues bonds which are bought by big institutions, those institutions know that they can turn an immediate profit by then selling them to the FED, the institutions now have money to borrow more from the Treasury… I big old circle jerk. Ryan says we can keep this up for two full more Generations and pass the crisis onto someone else. OUR KIDS! Who wants to support him? Raise your hands.

astonerii on September 11, 2012 at 3:38 PM

BS pure garbage.

This tax cheat is just lying through his behind. He will say anything to fund what he wants funded to steal as much money as possible.

Call their bluff. Worst case scenario a global collapse happens not not in a few years. Even if they are right we are just putting it off a very short time. But if they are wrong we could be putting it off forever. So far they have been wrong 100% of the time after all this tax cheat said we would have 5.9% unemployment now.

But you are right Romney would not change anything on the USS Titanic he would only slightly move the deck chairs.

Steveangell on September 11, 2012 at 3:50 PM

Call their bluff. Worst case scenario a global collapse happens not now not in a few years.

Steveangell on September 11, 2012 at 3:51 PM

Old Country Boy on September 11, 2012 at 3:47 PM

Imagine an Obama administration where the precedent for a big bill was somewhere south of $200B instead of somewhere north of $850B. Imagine being $5t less in debt if good old King GeorgeGeorge W Bush did not set the precedent of just shy of a trillion dollars. No $900B stimuless, closer to $200B, the stimuless spending’s new baseline budgeting is what has proped up the annual deficits since we have not had any budgets since. How would they have passed Obamacare if they did not have close to a trillion dollars as a baseline for a bill price tag? Would not have happened…

Yeah, vote into power another progressive Republican and see what he scares the voters into electing next time they throw the bum out!

astonerii on September 11, 2012 at 3:53 PM

Romney actually leads in the polls if they were not skewed. Why doesn’t Laura get that?

jazzmo on September 11, 2012 at 3:49 PM

She explains.

People said the same thing in 2006. We lost the House and Senate.

They also said the same thing in 2008. Obama won.

You are deluding yourself. Romney is not wining.

Steveangell on September 11, 2012 at 3:53 PM

Yay. Four times in a row. That has to be some kind of a record. We should celebrate.

Oh, and then we should prepare for economic disaster.

oldroy on September 11, 2012 at 3:54 PM

Call their bluff. Worst case scenario a global collapse happens not now not in a few years.

Steveangell on September 11, 2012 at 3:51 PM

I know there will be a crisis. I want it to happen now where those culpable for it are those affected by it. Putting it off for other people to suffer is wrong and is not how I was raised.

astonerii on September 11, 2012 at 3:55 PM

You are deluding yourself. Romney is not wining.

Steveangell on September 11, 2012 at 3:53 PM

Neither was Reagan, Bush 41, Clinton, or Bush 43.

Unless you’ve got the internal polls of both campaigns and the crosstabs that go with them you don’t know either.

oldroy on September 11, 2012 at 3:56 PM

http://www.weeklystandard.com/blogs/chart-america-s-capita-government-debt-worse-greece_631797.html

America’s Per Capita Government Debt Worse Than Greece,’ as well as Ireland, Italy, France, Portugal, and Spain.

bayview on September 11, 2012 at 3:58 PM

Hey, someone has to pay for Santa’s gifts to “the people”…

Strike Hornet on September 11, 2012 at 3:59 PM

You are deluding yourself. Romney is not wining.

Steveangell on September 11, 2012 at 3:53 PM

Hmmm. Washington Post/ABC poll Obama 49% Romney 48% D+6

Dems are not going to be D+6 on 11/6

jazzmo on September 11, 2012 at 3:59 PM

Crank up the union presses and the crackheads that run them. It will all be ok, someday.

Limerick on September 11, 2012 at 4:02 PM

$1,000,000,000,000, see that’s not to bad. (Sarc)

DDay on September 11, 2012 at 4:04 PM

I know there will be a crisis. I want it to happen now where those culpable for it are those affected by it. Putting it off for other people to suffer is wrong and is not how I was raised.

astonerii on September 11, 2012 at 3:55 PM

Inclined to agree with you. Rather than going lightly, and pay-as-you-go, we’re going 110% over the cliff. There isn’t even a shred of embarrassment or concern about it in Washington.

I do believe Romney will win. I also believe we’ve already gone over the fiscal cliffs of insanity.

Only if Germany tells the EU and Greece ans Spain and Italy and Portugal and Ireland to pound sand, can initial damage be confined. But I believe there are others, Soros for example, the want to profit from chaos and American decline.

What the whole world hasn’t brought themselves to admit, is that if the American economy is crushed, the rest of the world does down for a couple of decades.

But best it happens as early as possible. But I’m suspecting that the whole thing will be stretched out to the point of no return for decades.

As one of my liberal acquaintances said at the dinner table the other night: ‘Money is just a symbol. “They” will readjust money’s value to make everything work out.’ Face-palm. She is a “Solar Home Designer”. Doesn’t understand Photovoltaics and batteries….

oldroy on September 11, 2012 at 4:09 PM

Romney had so much ammunition I wonder why he doesn’t use it.

mrscullen on September 11, 2012 at 3:25 PM

He will. And he will do it at the absolute best time. The debates.

Further, once the tide officially turns against BO, watch for social unrest which will result in a landslide victory for Romney.

It’s not going to be near as close as we are all being led to believe.

booter on September 11, 2012 at 4:19 PM

As one of my liberal acquaintances said at the dinner table the other night: ‘Money is just a symbol. “They” will readjust money’s value to make everything work out.’ Face-palm. She is a “Solar Home Designer”. Doesn’t understand Photovoltaics and batteries….

oldroy on September 11, 2012 at 4:09 PM

She’s right in a very superficial way. Money is also trust and if you break that, it doesn’t come back easy, if at all for some.

sharrukin on September 11, 2012 at 4:19 PM

As one of my liberal acquaintances said at the dinner table the other night: ‘Money is just a symbol. “They” will readjust money’s value to make everything work out.’ Face-palm. She is a “Solar Home Designer”. Doesn’t understand Photovoltaics and batteries….

oldroy on September 11, 2012 at 4:09 PM

When the big readjustment comes, it’ll be better to be a debtor.

Why do I have this feeling she has a big credit card bill?

PackerBronco on September 11, 2012 at 4:29 PM

Why do I have this feeling she has a big credit card bill?

PackerBronco on September 11, 2012 at 4:29 PM

Credit cards interest is tied to general interest rates, so she would still be screwed. Fixed rate interest rate loans are where you make out when inflation hits OD.

astonerii on September 11, 2012 at 4:37 PM

…but he’s frugal!

KOOLAID2 on September 11, 2012 at 4:51 PM

Paging President Downgrade!!

Paging President Empty Chair!!

Khun Joe on September 11, 2012 at 4:53 PM

It’s not going to be near as close as we are all being led to believe.

booter on September 11, 2012 at 4:19 PM

I agree… I feel a wave election coming on…

Khun Joe on September 11, 2012 at 4:55 PM

4th tril deficit. 41 comments. ho hum. the temperature on the frog just went up 5 more degrees.

t8stlikchkn on September 11, 2012 at 4:57 PM

But Social Security is up 6 percent and Medicare spending is up 4 percent compared with 2011, CBO said. …

Hmmm…..appears those nasty “entitlement” programs will continue in increasing their costs. Time for ObamaCare to kick in. We start killing off the seniors (like me), maybe we can drive those numbers down.

I’m just hoping that people like Reid, Pelosi, Feinstein and Frank go first!

GarandFan on September 11, 2012 at 5:49 PM

Looks like people do not want to be reminded of this debt burden they are laying on the future generations of this country. This thread is dead.

astonerii on September 11, 2012 at 7:34 PM

astonerii on September 11, 2012 at 3:53 PM

No $900B stimuless, closer to $200B, the stimuless

I suspect the word stimuless is merely spelling ignorancce. The word should be stimulus. However, giving you credit for being an unsung genius, I think you should copyright this word. This is the perfect description of what the dhimocrapts are doing – stimuless

I hope you were just being sans sarc/ tag. However, your serendipidous posting could end up in the dictionary.

Why don’t all of us use this word? It should catch on.

Old Country Boy on September 11, 2012 at 7:47 PM

I suspect the word stimuless is merely spelling ignorancce. The word should be stimulus. However, giving you credit for being an unsung genius, I think you should copyright this word. This is the perfect description of what the dhimocrapts are doing – stimuless

I hope you were just being sans sarc/ tag. However, your serendipidous posting could end up in the dictionary.

Why don’t all of us use this word? It should catch on.

Old Country Boy on September 11, 2012 at 7:47 PM

it is intential. LESS being the operative word.

astonerii on September 11, 2012 at 8:08 PM

Old Country Boy on September 11, 2012 at 7:47 PM

Intentional… LOL

Anyways. I did not come up with it. I read it several times back in 2009 and stuck with it. My spell checker keeps trying to fix it… I should put it in my dictionary.

astonerii on September 11, 2012 at 8:10 PM