Record Deficit Spending for Fiscal 2009
Archives: Investing
As a result of expenditures for economic relief programs and government bailout programs aimed at getting us out of this recession, the U.S. budget deficit for fiscal 2009 is already close to $1 trillion, the biggest in history. In fiscal 2008, the deficit was a record $455 billion, and this year’s could be four times higher, possibly hitting $1.8 trillion.
And that’s not all. The recession took a bite out of tax revenues and put millions of people out of work. Higher jobless benefit claims are pushing government expenses higher. In addition, defense spending is elevated and Social Security costs are growing.
If an individual consistently spends more money than he takes in, he will eventually go bankrupt. But the U.S. government will never go bankrupt because it can just print up new money whenever needed to meet its debt obligations.
A projected deficit of $1.8 trillion this year and a current national debt of over $11 trillion could lead to a big spike in inflation. So make sure you protect your wealth and purchasing power. Invest in hard assets like gold, silver, copper, land, and oil.
[Ed. Note: Ted Peroulakis keeps a close eye on the markets and government efforts to keep this recession at bay in Investor's Daily Edge, ETR's sister publication.
You can meet IDE's financial experts - along with other top names in the industry - in person this June. Find out more here.]
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