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IPFS News Link • Economy - Economics USA

Fed budget deficit for October: $176.36 billion

• Washington Post
The federal budget deficit for October rose more than expected to $176.36 billion, the government announced moments ago, up from $155.53 billion in October 2008.

This is the largest October deficit on record. It is the first month of fiscal 2010.

The total national debt -- the sum of all deficits from the beginning of the republic until today -- is now up to nearly $12 trillion.

A healthy economy should not have a deficit that's more than about 3 percent of its GDP. Even with a GDP that's gone positive in the third quarter, the U.S. deficit now projects out to about 11 to 12 percent of GDP. And that's scary.

Here's what's scarier: Tax receipts to the government were down 18 percent compared to October of last year, obviously because of the recession. So you've got rising spending and falling revenue. Not only is that a recipe for disaster, it's a recipe for falling public approval ratings for the White House