Posts

Showing posts from October 19, 2009

The small problem of the biggest deficit ever

Business Times - 20 Oct 2009


The small problem of the biggest deficit ever

America's huge deficit is likely to remain since any efforts to curb it may be unpalatable

By LEON HADAR
WASHINGTON CORRESPONDENT

OBAMA administration officials are trying to spin the terrible economic news - that the United States registered its largest annual budget deficit in history - by urging everyone to look on the bright side. Yes, the US posted a US$46.6 billion deficit for September and a historic record US$1.42 trillion deficit for the 2009 fiscal year (ended Sept 30).

But, hey, there was some good news. The budget deficit was actually lower than expected.

Indeed, the size of the deficit this year wasn't as bad as government economists had originally thought it would be. In August, federal budget analysts calculated that the government would end the year US$1.58 trillion in the red. And in May, they had predicted a deficit of US$1.84 trillion.

'This year's budget deficit is lower than we…