Here is another tidbit on Federal deficits and debt:
My take:WASHINGTON (AP) -- The federal government fell further into the red in 2009, with its financial position hitting a deficit of $11.46 trillion.
That figure is 12.3 percent higher than the previous year, according to a new report issued by the Treasury Department on Friday.
The annual report shows that the government's big entitlement programs such as Social Security and Medicare are facing a deficit over the next 75 years of $45.88 trillion, an increase in that deficit of $2.9 trillion in just one year.
The problem here is that state and municipalities have begun their delever process, but Congress still hopes to inflate the government sector. We end up with a mis-match that has to be resolved, and the debate becomes centered around local government funds vs federal entitlements. Government, as a production system, is readjusting the deliverables in terms of frequency and quantity. I takes two or three years, and will likely extend the recession.
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