Sunday, October 18, 2009

Budget Deficit and National Debt

I wish there would be some stories about why these numbers are so different...

Reported 2009 budget deficit (fiscal year ended September 30, 2009) = $1.4 trillion

National Debt as of Sept 30, 2008 = $10.024 trillion
National Debt as of  September 30, 2009 = $11.909 trillion

Actual Budget Deficit for 2009 fiscal year = $1. 885 trillion

There are two things you should be aware of with these numbers...

First, you should ask why the government's "official" budget deficit is nearly $500 billion less than the amount added to the national debt.

Second, you should know the government must sell treasury bills to finance the $1.885 trillion. Currently, only $900 billion have been bought by American people, and foreign people and foreign governments. Who do you think bought the rest?

The Federal Reserve. How can that happen? The government can't pay the bills so the Central Bank buys the debt. Hmm. I wonder if this concerns Tim Johnson or Stephanie Herseth--or anyone in government. It seems like when you look at those numbers, you wonder why we are even debating a health care program to add another trillion of debt that we can not afford...

1 comment:

Anonymous said...

The bottom line? I truly believe that Mr. Jonson and Mrs. Sandlin don't care about the debt. Its all about the power. Liberals see the ends will justify the means.