US Budget deficit tops $1 Trillion

[dmc444]

The federal budget deficit has grown to a whopping $1.09 trillion in the first nine months of the fiscal year, the first time it's crossed above the $1 trillion mark, the Treasury Department reported late Monday. The fiscal year began in October.

The nine-month shortfall was a heckuva lot more than the deficit of $285.9 billion in the same nine months a year ago. The government racked up a $454.8 billion shortfall for all of fiscal 2008.

The government expects tally to swell to $1.84 trillion by the end of the year.

Latest Dispatches- MSN Money

[sharper]

That's $1.84 trillion out of a GDP of $14 trillion.

Ireland's looks like it'll be at least €30bn out of a GDP of €180bn. That's just for basic spending, bank recapitalisations and NAMA goes on top of that figure. Our GDP is also falling much faster than the United States'

[dmc444]

That's $1.84 trillion out of a GDP of $14 trillion.

Ireland's looks like it'll be at least €30bn out of a GDP of €180bn. That's just for basic spending, bank recapitalisations and NAMA goes on top of that figure. Our GDP is also falling much faster than the United States'

Im not asserting that Ireland is better than the USA, i just read MSN money everyday and thought this was an economic story people on this site would find interesting.

[seanmacc]

Our problems are mounting but are only just over a year old. The US hasn't had a budget surplus since the George Bush I era.

I put this on a post before but it looks scary. When they default. And they will they are going to bring us with them U.S. National Debt Clock : Real Time

[sharper]

Im not asserting that Ireland is better than the USA, i just read MSN money everyday and thought this was an economic story people on this site would find interesting.

I realise that I just want to put the figures in perspective.

Our deficit for day-to-day spending is as bad as their blockbuster deficit which contains significant once-off spending (like the $1 trillion stimulus).

[dmc444]

What i dont get is, America does not have the same level of social services to pay for as Ireland or the UK would so how come they have this level of spending?

[cHeal]

The US, is already in debt, exceeding it's GDP. Ireland is not. The US has not balanced a budget in nearly a decade, Ireland hasn't borrowed any extra monies in that same time, and has greatly offset it's debt. Ireland just has a more fragile economy because of it's size and can't as easily take on substantial debt, but US debt in relation to it's GDP far exceeds Irelands.

The only thing keeping the US going is the reserve status of the Dollar and the fact most other nations are heavily invested in it. The thought that America would default is so unthinkable at this point that people feel they must continue to invest to help America out. It's a self fulfilling prophecy.

[sharper]

What i dont get is, America does not have the same level of social services to pay for as Ireland or the UK would so how come they have this level of spending?

The US does have enormous levels of military spending, a couple of wars and a large stimulus package.

[sharper]

The US, is already in debt, exceeding it's GDP.

US debt is estimated to hit 90% of GDP this year

United States public debt - Wikipedia, the free encyclopedia