Deficit projections go in only one direction, up. The federal deficit for the current fiscal year will not disappoint.
The White House projected today that it will climb to $1.65 trillion, the largest dollar amount ever.
At $1.65 trillion,for the 2011 deficit,is significantly larger than the $1.48 trillion estimated by the non-partisan Congressional Budget Office a few weeks ago. In fiscal year 2010, the deficit was $1.29 trillion.
Looks like Ben is going to have some serious bond buying to do, in the months ahead.
Be careful with this number. It may be a ploy. If the deficit comes in at 1.48T and they're predicting 1.65T they can come back and say "Our policies kept the deficit 170B below expectations," and their lapdogs in the MSM will report how the recovery is improving our fiscal situation so well. I think the WH learned the hardway to never overpredict on the sunny side.
ReplyDeleteWhile the President is feeding us his line of garbage as to cutting spending, it came to my attention yesterday that the FED is considering a QE3 package as the 1.2 trillion dollars of worthless money they've already printed hasn't done what they though it would. All of the cuts in the world are not going to offset the hyper inflation and the costs that come with printing worthless money. M1 has grown 15.2% in less than 3 months and all of that is unbacked paper!
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