The latest deficit news from President Cut-the-Deficit-in-Half-in-In my piece called "Get Ready For The New Normal" I talked about how people are willing to accept outrageous gas prices because they've dropped a bit from record highs. People have already forgotten that prices were half what they are today when Obama took office.Five-Years:
The U.S. federal deficit was slightly smaller through the first five months of the budget year than the previous year. Still, the imbalance is on pace to exceed $1 trillion for the fourth straight year, which could be an issue in this year's presidential election.
The Treasury Department said Monday that the deficit grew by $232 billion in February. That increased the imbalance through the first five months of the budget year to $581 billion, or 9 percent less than the same period in fiscal 2011.
The Obama administration expects the deficit will reach $1.3 trillion when the budget year ends on Sept. 30. That would nearly match last year's gap. The government ran a record deficit of $1.41 trillion in 2009 and a $1.29 trillion gap in 2010.
The two key sentences: "The deficit reached a then-record of $458 billion during Bush's last year in office. . . . The deficit surpassed $1 trillion for the first time ever in 2009 and hasn't been below that level since."
But wait, Tyler Durden of Zero Hedge, what does that mean?
A few days ago we noted that based on preliminary data, the February budget deficit would hit $229 billion (yes, nearly one quarter of a trillion in one month, about where real Greek GDP is these days) -- the largest single monthly deficit in history. Unfortunately, this number was low: the final February deficit was just released and the actual print is $231.7 billion.
The same phenomena is occurring with budget deficits. The deficits we were told were outrageous by people like Nancy Pelosi during the Bush Administration are 1/3 to 1/2 of what we've seen every year since Obama took office, but where's Nancy now? She's eagerly signing on to these massive budget bills and voters just aren't paying attention.
Unfortunately, I doubt this will be as big an issue in the election as it should be.
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