Thursday, December 11, 2008
Posted by: John Campbell at 1:06 PM

As part of my weekly report as Chairman of the Republican Study Committee’s Budget and Spending Task Force, I made note that according to the Congressional Budget Office’s (CBO) December Budget Review, the first two months of FY 2009, the federal government has run a deficit of $408 billion on a cash flow basis, which is 163% above the level through the first two months of FY 2008. .


CBO also notes a lower deficit figure of $267 billion if TARP spending to date is accounted for instead on a net present value basis. Including TARP Spending, federal outlays have increased by 48% and receipts have decreased by 6%. The FY 2008 deficit was $455 billion, the highest nominal deficit in U.S. history -- $293 billion or 180% more than the FY 2007 deficit.


For both the current fiscal year and FY 2010, some economists predict deficits of more than $1 trillion. To put this into perspective, a deficit of this magnitude would not only be the largest nominal deficit in U.S. history, but would also be the largest deficit as a percentage of GDP since World War II.



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mr_sparky writes: Thursday, December, 11, 2008 3:48 PM
Hmmm
Congressman where was the republican party when they were in control? And now that the democrat party is in control, guess what? Spending is going up and Congress is going to bankrupt the country. So better get use to just being like a sponge and being bleed by the thieves of both parties in Congress. Just sit back and dream of where the Country will be in about 8 years after the diaster that is coming now and quick.

Tell me Congressman, what is around the number of unfunded liabilities of the US Gov. You know SS,Medicare, and Medicaid. So where does the Gov come up with the money. Do you want us to become like that wonderful country now called Zimbayee.
The Plumber writes: Thursday, December, 11, 2008 4:32 PM
Deficit?
What deficit?

good comment sparky.
zapdoodat writes: Thursday, December, 11, 2008 5:16 PM
mr sparky
It was the Republicans who added the $50 billion a year Medicare Prescription, Pard D program, while bogusly claiming it would only cost $40 billion a year.

When someone in the Congressional Budget Office wanted to inform Congress that the program would really cost $50 billion a year, the Republicans fired him.

This additional spending program was a handout to the pharmaceutical companies, on the backs of the American taxpayer.

A year later, President Bush campaigned about the looming crisis in entitlement spending. What a joke, this just after the Republicans had tacked on yet another entitlement spending program, paid by dumping the entire cost onto the national credit card.

Do you think an American should be able to shop for drugs in Canada or Mexico if that's what they want to do? The Republican party says that is criminal behavior. Talk about nanny-staters!

wanjiru writes: Thursday, December, 11, 2008 5:47 PM
The Defecit not a priority - says BHO
Why is it that when republicans have a majority, they are too weak to lead and when they are in the minority they are too weak to oppose stupidity? The republicans allowed Bush to spend his way into oblivion while Cheney said 'so?' - all in the name of national security. Now, the democrats are going to spend their way into oblivion in the name of 'protecting middle class families' while Obama reminds us 'Bush put us here' (something I agree with). The question will now become - is there a group of american citizens who love this country enough to fight for the conservative fiscal policies that made this country great? Regardless of party, these men and women seem to either not exist or have the will to fight.
Kathryn (More govt is NEVER the answer) writes: Thursday, December, 11, 2008 6:23 PM
Liberalism hurts
Whether liberals act as liberals or Republicans act as liberals, the results are the same: Big spending runs up the deficit and harms the economy.

But what am I talking about--now that Obama is going to be president, the deficit will magically stop being an issue.
The Plumber writes: Thursday, December, 11, 2008 6:28 PM
Zap and WC
I suppose that's why Hayek dedicated his most famous book to "The Socialists of All Parties".

Idiots.
DDL writes: Thursday, December, 11, 2008 7:07 PM
Borrow Borrow Borrow
And spend spend spend during the entire Bush presidency, of which Republicans had a majority in Congress for the first 6 years. Too bad that they did not fight against out of control borrowing and spending as hard as they have to try to kill the automakers loan that just passed the House. But hey, far better than raising taxes and alienating the voters, huh??

Oh, wait..That borrowing and spending didn't involve a LABOR UNION. It involved in part the funding of two undeclared "wars" and an unending occupation.
h20skier writes: Thursday, December, 11, 2008 10:36 PM
You are right
Kathryn. Liberalism hurts. Zap - There you go again. The Republicans were in charge for the first 6 years of the Bush presidency and they got run off because of their irresponsible spending. The Democrats came into power promising to do better. Well, if by doing better they meant increasing the deficit they have done a bang up job. Next year under the Democratic Congress with a Democratic President it is predicted to have a $1 trillion deficit. What have the Democrats done to get this deficit under control? Nothing but spend even more than the spend drunk RINOs.
 writes: Thursday, December, 11, 2008 11:28 PM
SEgXY.com
The federal debt has increased by $1T in less than 3 months - and we haven't even reached the Medicare/Medicaid/Social Security crisis yet.

Promote fiscal responsibility every day, but with our congress it's an uphill climb. So consider protecting yourself by investing in securities or insurance products denominated in a stronger currency - like Swiss Francs.
Skagway guy writes: Thursday, December, 11, 2008 11:45 PM
Well done!
W and his GOP buddies have done a heck of a job with the economy!
h20skier writes: Friday, December, 12, 2008 12:09 AM
Pet Goat
I guess you are one of those voters that believe the GOP is still in charge of Congress. Wake up. The Democrats have been in charge of Congress for the last 23 months. They have done a great job, haven't they?
Paul writes: Friday, December, 12, 2008 3:50 AM
Fannie/Freddie Hearings
Don't let the congressional hearings get lost in the shuffle here. They're the root of much of the current mess after all, with blood all over the Dems' hands.
Dave writes: Friday, December, 12, 2008 5:51 AM
He Kept His Promise
He said he would double the deficit by 2008. He did.


O? What's that? He actually said that he'd cut it in half by 2008? O
mr_sparky writes: Friday, December, 12, 2008 8:46 AM
zapdoodat
i blame both parties and this has been going on since at least President Hoover days. And when does the country finally collapse under the weight of to much debt?

Did you happen to see the article from the guy over in Russia that said the USA would break up in a few years.

I for one will move south to Texas i think if not overseas with my wife. At least Texas is a no income tax state. At least they got that part right.
Rich Not wealthy writes: Friday, December, 12, 2008 9:21 AM
It is time to fire our government!
And I mean Ready, Aim, Fire!
heresyarch writes: Friday, December, 12, 2008 11:37 AM
Zippidity doo dit writes
"A year later, President Bush campaigned about the looming crisis in entitlement spending. What a joke, this just after the Republicans had tacked on yet another entitlement spending program, paid by dumping the entire cost onto the national credit card."


Aaaah, the fiscally responsible, Obama voting zippidity comes forth. So the dems (and Obama) want to bail out an ailing auto industry....(and not to mention a financial industry). Is this fiscally responsible? Will you invest your hard earned dollars into GM? LOL.

I find it quite ironic, the dems pushed for and got "low cost" home ownership (read the CRA), and we in turn got a financial crisis. Now the market itself is trying to deliver low cost home ownership (dropping prices), and the dems are going to do whatever it takes to prop home prices up.

Frankly, Obama's future public works programs will just repeat FDR's failures... in spite of spending millions, unemployment will keep rising, and stagnate, as it did under FDR.

You are a sucker...told you not to vote for Obama (or McCain) for that matter.

Welcome to a brave new world, your elected officials have come to screw you.
The Other Hugh writes: Friday, December, 12, 2008 2:26 PM
Deficit
I'll be 50 this month and all my life I have seen doomsday finanical books written about America but this is the first time I can remember believing the possibility of economic collapse. Two things have to happen: You Republicans have to repudiate all that Bush did and hold him up as the failure he is. Second, you have to come to grips with the fact that we are in deficit hell because America has decided to carry the third-world constituencies of the left rather than requiring them to work for a living. Whatever happend to the young Newt Gingrich?
Redlac writes: Friday, December, 12, 2008 2:30 PM
You Got It Right
The United States of Africa is coming to take you away, coming to take you away. Wasn't there a song about that? How sweet. We take 16 years to go from $2.5 trillion to $5.2 trillion, 8 years to go from $5.2 trillion to $9.7 trillion, and now we've just decided to round those pesky billion numbers up to trillion - and add $1 trillion a year. Just think. Given the trends, in another 8 years we'll have a national debt of $18 trillion, and then we'll decide to round those pesky $1 trillion per year numbers up to $2 trillion. After all, if you owe $55 trillion or whatever in unfunded entitlements, what's $18 trillion in debt. Pocket Change.
h20skier writes: Monday, December, 15, 2008 11:33 PM
Obama
And Obama plans to introduce a $1 trillion "stimulus" plan which the Democratic Congress will gladly pass because now the Democrats say the deficit doesn't matter. The way things are going we are going to have a $2 trillion deficit next year alone.
krause writes: Wednesday, December, 17, 2008 11:47 AM
Infrastructure
So, our illustrious congress has been spending money on this crap, while our infrastructure crumbles (according to Obama)?
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About John Campbell

John Campbell is a member of the House Financial Services Committee, and has taken a leadership role in addressing the country's top economic issues. Campbell serves as a member of the Joint Economic Committee, and House Committee on the Budget. He has a Bachelor's Degree in Economics from UCLA and a Master's Degree in Taxation from USC.

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