Millions of lost jobs mean billions in lost tax revenue for the U.S. government, and billions in additional Treasury debt to fund a federal budget deficit that may soar to more than four times last year’s record $454.7 billion.
Employers cut 3.7 million positions from their payrolls in the six months since the fiscal year began Oct. 1, and the unemployment rate reached a 25-year high of 8.5 percent in March. That suggests receipts for April -- the biggest month for tax collection -- are likely to come in well below April 2008, analysts said.
With spending on unemployment insurance and other safety- net programs rising, the deficit is already at a record $956.8 billion six months into the fiscal year. To help close that gap, the Treasury Department has more than quadrupled borrowing, pushing the government deeper into debt.
“Tax receipts are just collapsing,” said Chris Ahrens, head of interest-rate strategy at UBS Securities LLC in Stamford, Connecticut, one of 16 primary dealers required to bid at Treasury auctions. The need to sell more debt “is a big issue in the Treasury market and it is ongoing. The surging budget deficit is the primary cause.”
The government will have to sell $2.4 trillion in new bills, notes and bonds in fiscal 2009, according to UBS. From October through December, the Treasury sold a record $569 billion, up from $82 billion in the same period a year earlier, and auctioned another $493 billion in the last quarter, up from $156 billion. That helps to make up for the drop in tax receipts, pay for the rise in spending and refinance maturing debt. Along with the principal, the sales add additional interest costs to the deficit for years to come.
Yikes then consider the Unemployment...
At the same time, government spending has climbed 33 percent in the fiscal year through March, as relief programs such as unemployment benefits expand. Labor Department expenditures have more than doubled to $52.7 billion and payments by the Department of Health and Human Services have risen by $40.6 billion, or 12 percent. Spending by the Agriculture Department, which runs the food-stamp program, is 18 percent higher, or $9.9 billion more than in the same period a year ago. See the other problems associated with all this here...
As predicted by many the commercial real estate sector is collapsing as well and do not be fooled any supposed good news on homes is faux there is a shadow inventory and prices will continue to fall. Credit card delinquencies are soaring as people try and fail to make ends meet and jobs vanish due to his tax and spend policies.
Gold owners are under assault by our government too since they see you as a threat for not trusting our financial system I imagine you will be labeled an enemy of the state just like they are labeling Veterans and decent hard working Americans who protested the ruination of their childrens/grandchildrens future but at this rate I suspect it will happen soon and the riots and food shortages being predicted will take place in the not too distant future as more and more people lose their jobs and homes.
The loss of homes is now spreading to decent people who did not take Liars loans but now with the huge job losses taking place they too are failing. The obamanazi's advisor pledged $1 Trillion in sub-prime loans do not forget and now the appointed head of Fannie Mae commits suicide while an investigation is going on seems Death is a common theme when Democrats are questioned...hmmm.
It is clearly only a matter of time and the house of cards will begin collapsing. Our government has been warned but the obamanazi does not seem to listen instead he goes about spending $5.7 billion more on his "National Service" bill and keep in mind he wants the pledge to be to him not to America! This bill TRIPLES the size of AmeriCorp. His background really is nothing more than a Community Organizer and we can see he certainly knows how to go about getting big money to fund his projects as well as his pocketbook. Even as agencies report all the problems with the TARP it marches on threatening to cost taxpayers a bundle.
I also wonder why the Fed is funding foreigners don't you (maybe Helicopter Ben and Tax Cheat Timmy whose father was said to be a Spook put a little something away for a collapse if things go awry?). Another thing with clinton having been in the pockets of banks and china gate and allowing the repeal of Glass-Steagall (which by the way the evidence is starting to come out even though the left says it has nothing to do with the current crisis did indeed combined with bad actors in the banks have plenty to do with our current crisis) and NAFTA is this the end game they desired?
Is this a way to force the elitists New World Order perhaps so long ago planned by the CFR, the UN, the IMF who by the way is no innocent bystander they have plenty to gain with the loss of our dollar as the world currency and who just yesterday put out the cash call again that the obamanazi is sure (lol make sure to read authors comments on this one!) trying to heed.
I just have to question the wisdom or the underlying reasons why when we are facing the highest deficit ever are being warned from nation creditors and many are predicting riots and total collapse coming he sees the need to triple this and why they want the pledge to be to him rather than to our country? Could it be the (see FEMA plans hidden under) Marshall law the Looney Left was always screaming about will be at the hands of their own dear leader? There will be alot of anger out there amongst young unemployed men and who better to harness it for their own purposes than a community organizer turned Resident?