The Prophecies of the High Priests Coming True

The High Priests of Finance expect the federal deficit to hit $1.8 trillion by the end of the fiscal year. So how are the actual numbers running two-thirds of the way in?

The former acting director of the Congressional Budget Office, Donald Marron, has a new blog in which he keeps track of such things. It's written in plain ol' American English, has cool graphs, and keen insights on such things.

Marron's post of Monday shows the current running deficit at $984 billion. He breaks down what categories of spending, etc., are contributing to the deficit.

Now you might say, "Hey, Tom, $984 billion doesn't sound so bad since we are eight months into a twelve month fiscal year. What's the deal?"

And I would answer, compare it to last year when the operating deficit was "only" $319 billion. That's $665 billion MORE than a year ago.

Worse, I would tell you, we just went through the part of the year when individual income tax returns come in. This historically is where a great deal of money flows into Uncle Sam's coffers. Thanks to our economic slump/recession/depression (take your pick) tax revenues are $297 billion lower this year.

Some would argue that we should tighten our belts when revenues are down. (Silly flat-earthers!)

Spending on TARP is $130 billion. Spending on Fannie Mae and Freddie Mac (officially known as GSE; unofficially known as "pouring money down Barney Frank's rat-hole") is at $60 billion. Since TARP is authorized for $700 billion, and it operates as a "slush fund" for whatever Obama-Geithner-Bernacke desire, you can bet the milk money that more money will be spent.

So buckle up, me hearties, this fine weather's gonna get a bit rough.