Obama Delivers Largest October Deficit On Record

November 14, 2009

As our government debates adding trillions of dollars in spending through the health care reform bill, we are reminded the sad shape of our government’s finances.  President Obama has delivered a record monthly budget deficit in his first fiscal year as president.   It was reported this week that Obama has delivered the largest October budget deficit on record.

The government took in $135 billion in October, but the Obama administration spent $312 billion delivering a $177 billion budget deficit.

Most Americans don’t understand the trouble large budget deficits can cause.  In September this year, the American tax payer payed $17 billion in interest payments on the national debt that we have accumulated as a nation.  That doesn’t even address the principle on the roughly $12 trillion of national debt the American tax payer is on the hook to pay off.

To make it easier to understand those numbers, consider that $17 billion in interest equals $567 million a day in interest payments or $24 million an hour.  Now consider that taking into account the budget deficit projections for the next 10 years, by 2019 the national debt is expected to double.  This would mean the American tax payer would be on the hook for over $1 billion a day in interest payments.

They nation is headed toward a similar situation that faced many Americans in the last few years.  Many Americans ran up debt by purchasing homes they couldn’t afford (aided by banks and the government) and spending more than they made in income.  Many faced losing their homes and bankruptcy and had to be bailed out by the American tax payer.

When the government is facing not being able to meet its interest and debt obligations, who will bail us out then?

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