The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year.No, the byline doesn't read AP Comedy Writer.
The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through a severe recession and massive spending needed to stabilize the banking system.
The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits. Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the current downturn is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control.
Since the number was less than expected, I'm sure Obama will trot someone out to say he saved us $40.6 billion last month.
No comments:
Post a Comment