Government debt explosion hits turning point with forecast for drop of 18 percent this year

[TomCADem]

Source: Associated Press

WASHINGTON (AP) -- The government's explosive borrowing has hit a turning point: It's expected to drop 18 percent this year after last year's record high. The brighter picture is due to higher tax revenue and less government spending as the economy has improved.

The Obama administration still expects this year's deficit to set another high: $1.56 trillion. Even if, as expected, that number declines a bit when the administration issues a revised estimate this summer, it isn't likely to drop below $1.4 trillion. That would match last year's all-time record.

The stronger economy is boosting federal tax revenue and lowering emergency spending needed to stabilize the financial system and invigorate the recovery. As a result, the Treasury Department has trimmed its estimated borrowing needs for this budget year to $1.459 trillion. That's down 18.3 percent from last year's record $1.786 trillion.

Because of the drop, Treasury said Wednesday it's reducing its borrowing amount at its quarterly auction to $78 billion in a series of three debt auctions next week. That's down from a record $81 billion at the last quarterly action in February.


Read more: http://finance.yahoo.com/news/Government-debt-explosion-apf-3157069187.html?x=0&sec=topStories&pos=6&asset=&ccode=

[Festivito]

1. The "record high" results from the budget Obama inherited FROM BUSH**.

Along with the accelerating problems now decelerated and even returned to a positive position.

In other words: Obama's first Obama budget is going to borrow less than the one inherited from Bush. Not only will Obama borrow less than that last of the Bush budgets, but Bush craftily borrowed some of that money a week early and stuck it on the previous budget such that the some of the heightened Bush borrowing would look lower if you only look at the last budget rather than the last two Bush budgets.

Rant: RW Think-tank media Ass Press hacks! /Rant

[Lagomorph]

2. Could you post a source for that info?

I'm really interested in budget information.

[Festivito]

4. I like to use Debt to the Penny.

http://www.treasurydirect.gov/NP/BPDLogin?application=np

Bush started heavily borrowing around 2008-09-18. The 2007 fiscal year budget would end on 9/30.

That's raw data. I do the math myself.

[47of74]

5. Can't wait for work's resident teabagger to try to spin that one...

He comes up with all sorts of excuses of why everything bad is Obama's fault and everything good is because of the Republicans.

[Festivito]

6. Good luck. Be sure he'll keep spinning.

It's hard for some to admit when wrong, and so they won't.

I have a soft spot for the teabaggers because they mean well. They assume that the media is more concerned with the people's dollar than with the corporate dollar. And from there it's like discussing religion.

If you don't mind, one pet peeve. Don't agree TO DISAGREE with people(it's a little RW trick), agree THAT YOU DISAGREE and then attack where you disagree.

Good luck.

[Evasporque]

3. Bush taxcuts for the wealthy TeaBaggers expires too....nt