Record budget deficit for the month of August

[Pasi Nurminen]

http://today.reuters.com/news/artic...1_N13315909_RTRIDST_0_USA-BUDGET-UPDATE-2.XML

WASHINGTON, Sept 13 (Reuters) - The U.S. government posted a $116.97 billion budget deficit in August, a record for that month, as it accelerated some Social Security and Medicare benefit payments into August due to the timing of the Labor Day holiday, the U.S. Treasury said on Thursday.

The budget gap exceeded analysts' expectations for a $77 billion August deficit, and was 80.7 percent larger than the August 2006 budget gap of $64.72 billion.

Discuss.

 

[LightFang]

I dunno if that's good or not, but maybe we'll see the value of Keynesian economics when taken really far.

Hopefully this will SUPER invigorate our economy and we'll end up with like .05% unemployment rate!

</sarcasm> before the "lol lighty is dumb" comments.

 

[Japanrocks12]

It's probably more good than bad, but people won't really use it to their benefit. IT will deepen.

 

[Pasi Nurminen]

Deficit spending can raise one's economy out of a depression, but when taken to the extreme it merely incites further depression, particularly when all of that funding is going into Iraq, and not social services or anything useful.

 

[Stewbert 08]

I'd be a lot more forgiving of this administration spending beyond its (i.e., my) means if it were spending its (i.e., my) money on anything useful.

 

[EdwardTking]

The optimistic concept that the USA can simply grow its way
out of a deficit in a world with (i) competition from China, (ii) ever more
greedy CEOS, (iii) limited physical resources and (iv) sub-prime CDO
worries; all seems increasingly remote to me.

I'd say that a whopping dollar devaluation (internal inflation
and an exchange rate crash) is on the way.

 

[George2816]

The optimistic concept that the USA can simply grow its way
out of a deficit in a world with (i) competition from China, (ii) ever more
greedy CEOS, (iii) limited physical resources and (iv) sub-prime CDO
worries; all seems increasingly remote to me.

I'd say that a whopping dollar devaluation (internal inflation
and an exchange rate crash) is on the way.

Dollar already devaluated by 33% since 2000. How much more can we handle?