Uncle Sam's June Treasury Statement released today told us that with three months remaining in the 2012 fiscal year the government has already run up a deficit of over $900 billion. According to the Associated Press's Martin Crutsinger, Americans should see that as a "positive sign," because "deficit is growing more slowly than last year."
During the final three months of fiscal 2011, the government ran a deficit of $326 billion, which is why the following statement found in Crutsinger's Thursday afternoon report is such a howler:
President Barack Obama is almost certain to face re-election having run trillion-dollar-plus deficits in each his first four years in office.
Marty, he's going to be really lucky if it comes in below $1.2 trillion. (Crutsinger wrote as much later, when he noted that the Congressional Budget Office has predicted a $1.17 trillion deficit at year-end.) It would appear that Obama's only way out is for the world to end before July 31, because july's deficit will probably be the clincher for the fourth year in a row of $1 trillion-plus deficits.
Unfortunately, the officially announced deficit is only half the story -- literally. During June, the national debt increased by almost $86 billion, $26 billion more than June's deficit. The possibility that the U.S. might reach the currently legislated debt ceiling of $16.394 before Election Day still remains.
Crutsinger didn't deal with that sad reality at all.
Cross-posted at BizzyBlog.com.
