Tuesday, February 02, 2010

On the 2011 Deficit

The Obama Administration recently unveiled it's FY 2011 budget. It calls for a deficit of almost $1.6T, the largest budget deficit ever. I don't know what to write about this. It's beyond mind-blowing. It's the result of having the government run by packs of academics and political lifers who have only the most tangential intersection with financial reality.

All previous rants about the government being completely out of control are made obsolete by this budget.

4 comments:

Jeff Burton said...

Don't forget that this is far higher than the "forecast" the administration gave us last year for this year's budget. So forget about those "forecasts" of shrinking outyear deficits stapled to the back of this year's budget. We are rapidly approaching the event horizon here.

tim eisele said...

And if you want to know what proportions of it are being spent where (and where the increases are), check out this graphic. Of particular note is that the deeper green a category is, the more it has increased since last year.

There is a depressingly large amount of green.

K T Cat said...

Green means go!

Right?

Ohioan@Heart said...

The two obvious scary parts are that the greenest thing is Medicare... while the administration wants to nationalize the rest of the health care market in the country, and the interest on the debt - which goes up a staggering 33%!

There is NO WAY that growth in GDP and anything less than staggering tax increases can close this, well unless we are in for a massive round of inflation.

So depressing.