THE FISCAL TRAIN WRECK IN REVIEW. GOVERNMENT DEBT GROWING BY $4.86 BILLION PER DAY!

2009's FISCAL TRAIN WRECK IS OVER, BUT 2010 (Fiscal year) IS STARTING OUT EVEN WORSE:

President Obama's rhetoric may sound like a deficit hawk and voice of reason, but his actions don't match his words. The Democrat-controlled Congress and a Democrat President, is a prescription for a financial train wreck. They are addicted to spending your money. And not only is your money being used to buy votes from the public, but it's also being used to buy votes from other representatives like Mary Landreau and Ben Nelson. Who would have thought that "Hope and Change" would be so expensive?

On the last day of the First Session of the 111th Congress, the House passed two bills that are indicative of the overall state of federal finances. First, the House passed legislation to increase the national debt limit by $290 billion (the fifth such increase since January 2007). This vote was followed soon thereafter by a vote on the Democrats’ second “stimulus” bill of the year, which would add $150 billion to the nation’s debt. Below are some of the highlights of federal finances as the First Session of the 111th Congress comes to a close.

A Record Deficit: Since the Democrats took control of Congress, the federal deficit has increased from $162 billion (FY 2007), to $459 billion (FY 2008), to $1.42 trillion (FY 2009). This is an increase of $1.3 trillion or 774.7% in just two years. Last year’s deficit was the highest in U.S. history in nominal terms. It beat the previous record—the $459 billion FY 2008 deficit—by $958 billion or 208.7%. The FY 2009 deficit was 9.9% of GDP, the highest level since World War II.

FY 2010 Starts Off Worse Than FY 2009: In just the first two months of FY 2010, the federal government has run up a deficit of $292 billion. This is $4.86 billion per day! Put another way, the government is spending $4.86 billion more per day than they are collecting. In only five years in U.S. history (all of them during this decade) has the U.S. run a higher deficit for a year than what the FY 2010 deficit equals through just two months. The deficit through the first two months of FY 2010 is actually $11 billion higher than the same period of FY 2009, which was three times the largest of all-time.

Federal Spending Is Soaring: In FY 2009, the federal government spent the record amount of $3.5 trillion. This was an increase of $532 billion or 17.8% compared to the previous year. FY 2009 federal spending was 24.7% of GDP, which is also the highest level since World War II.

Climbing Debt Burden: The national debt exceeds $12.1 trillion ($39,500 per U.S. citizen). Since Democrats took over Congress less than three years ago, the national debt has crossed the $9 trillion, $10 trillion, $11 trillion, and $12 trillion marks.

Habitual Debt Limit Increases: In order to accommodate all of this new debt, in less than 3 years, the Democrat-controlled Congress has increased the debt limit five times, from $8.97 trillion in January 2007 to $12.39 trillion today—an increase of $3.4 trillion or 38.2%. Even with the most recent increase, it is expected that the debt limit will have to be increased yet again in the spring.

Growing Interest Payments Threaten Rest of Federal Budget: During the current fiscal year, CBO projects interest payments on the debt will amount to $196 billion ($536 million per day). According to CBO, if the budget is put on automatic pilot over the next decade, this figure grows to $722 billion in 2019 ($2 billion per day).

Unsustainable Borrowing Outlook: The public debt increased from 40.8% of GDP to 53.8% of GDP in FY 2009. The Committee for a Responsible Federal Budget projects that it will reach 85% of GDP by 2018, 100% of GDP by 2022, and 200% of GDP by 2038 (the record is 109% of GDP at end of World War II).

h/t RSC

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