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It was reported today (in the China Daily no less):

"WASHINGTON - US congressional analysts are expected on Friday to forecast even more red ink than expected, a record $1.8 trillion deficit for fiscal 2009, which could complicate President Barack Obama's efforts to pass his $3.55 trillion budget plan for 2010.

The Congressional Budget Office is expected to project a $1.8 trillion deficit for the fiscal year that ends September 30 and then forecast a drop to $1.4 trillion for fiscal 2010, a source familiar with the numbers told Reuters."

The original 2009 budget request (the last by President Bush) was for approximately $3.1 trillion (approximately $1.9 in mandatory spending and approximately $1.2 in discretionary spending). The budget was projected to raise the existing deficit of $10.2 trillion by a little over $400 billion (which was projected to disappear by 2012).

However, the deficit is now over $11.4 trillion....

Same old story. Just keep spending more money and tell everyone that everything will work out just fine.

Well, I guess things aren't working out - as it was also just reported (by the American Institute for Economic Research) that IRS tax revenues for April 09 had plunged $138 billion as compared to April 08.

Fasten your seat-belts and keep one hand on your wallet.

- Ed Smith, Publisher
The EHS Letter Manual