US Budget Deficit for 2009: $ 2 Trillion

[SevenEyedJeff]

http://www.bloomberg.com/apps/news?p...d=aXCtv.lATO8I

The 2009 budget deficit could be close to $2 trillion, or 12.5 percent of gross domestic product, more than twice the record of 6 percent set in 1983, according to David Greenlaw, Morgan Stanley's chief economist. Two weeks ago, budget analysts said the measures might push deficit to as much as $1.5 trillion.

[sratiug]

http://www.bloomberg.com/apps/news?p...d=aXCtv.lATO8I

Good lord, I thought you had to be kidding...

The 2009 budget deficit could be close to $2 trillion, or 12.5 percent of gross domestic product, more than twice the record of 6 percent set in 1983, according to David Greenlaw, Morgan Stanley's chief economist. Two weeks ago, budget analysts said the measures might push deficit to as much as $1.5 trillion.

Yields to Rise

That means a lot more borrowing by Treasury, which will push up interest rates, said Greenlaw. ``The Treasury's going to be ramping up supply dramatically over the course of coming months to meet this enormous federal budget obligation,'' Greenlaw told Bloomberg this week. ``The supply will trigger some elevation in yields.''

[SevenEyedJeff]

LOL Doesn't this make you want to hold on to your dollars even longer?

[Truth Warrior]

What's that in terms of gold?

$1.79

[FindLiberty]

DOOMED in '09 - Buy canned food NOW!

[SevenEyedJeff]

This deficit is literally more than twice its previous record in terms of GDP, and will only go up if they bail out even more companies, or go through with a 2nd stimulus package.

[Michigan11]

Soon they will announce the GDP grew by 2 trillion and that everything is fundamentally sound.

[Knighted]

I recall reading that the national debt as a % of GDP neared or peaked 100% around the 1950's. Considering that, I don't think that the debt being 13% of GDP necessarily means the end of the world. Although, there are certainly plenty of other reasons that doomsday might be coming for the US economy.

edit: I just checked. The debt peaked at 120% of GDP in the mid 1940's.

[nate895]

I recall reading that the national debt as a % of GDP neared or peaked 100% around the 1950's. Considering that, I don't think that the debt being 13% of GDP necessarily means the end of the world. Although, there are certainly plenty of other reasons that doomsday might be coming for the US economy.

The Debt is 10 trillion. The GDP is 14 trillion, it is well above 13% of the GDP.

[Knighted]

Oops, sorry. You're right. I misread the budget deficit while skimming the article as the national debt. I was thinking that seemed just a tad bit low. But my point still stands about the debt. At 70% of GDP, it's not a pleasant situation, but it's not unheard of either.

[Malakai]

All this and the Boomers retiring medicaid/SS crisis hasn't even begun yet. Us millenials sure inherited a fine mess.

[Truth Warrior]

The Real Federal Debt
It's $100 trillion, says Bill Walker.

[SevenEyedJeff]

Don't forget the GDP is also a manipulated number. Do you really believe the US economy grew by 3% in the 2nd quarter?

[ItsTime]

Food gold and silver sound good right about now.

[Sarge]

What happens after they have used all their options and the following shoe drops?

http://www.businessweek.com/magazine...pStories_ssi_5

[SevenEyedJeff]

What happens after they have used all their options and the following shoe drops?

Then the governments of the world will also be bailing out the credit card companies It never ends.

Like Jim Rogers said, we're gonna have an inflation holocaust.

[ItsTime]

What happens after they have used all their options and the following shoe drops?

http://www.businessweek.com/magazine...pStories_ssi_5

Then student loans... car loans... How many feet does this crisis have?