Yes, you read that correctly. Even though FY2013 is barely 1 month old, our Federal government is already “in the hole” $120 billion.
The Federal government spent more than it took in during October – roughly $120 billion more, to be precise. In October, Federal revenues from all sources were only about 60% of spending.
I can remember when an annual deficit of $120 billion was really bad news. Hell, according to White House figures in FY 2007 the annual total budget deficit (sum of on- and off-budget lines) was only $160 billion.
In case you’re wondering just how bad this is – I’ll save you the trouble of finding your calculator. If repeated for the rest of the Federal fiscal year that works out to an annual deficit of $1,440 billion – or $1.44 trillion.
Looks like Apu the Hindu was right. Financially we are truly screwed.