WASHINGTON: The AP reported an hour ago that the Federal deficit hit a record high in October, $176.4 billion. (Just billions… nothing to worry about, now that the trillion has become the new billion). This comes during a time of plunging revenues while at the same time Congress is spending borrowed money at a record rate.

According to Martin Crutsinger and Daniel Wagner of the AP:

The deficit for the 2009 budget year, which ended on Sept. 30, set an all-time record in dollar terms of $1.42 trillion. That was $958 billion above the 2008 deficit, the previous record holder. [Emphasis added]

October was the 13th straight month to show a monthly deficit — another record. It was the fifth-largest monthly deficit ever.  Martin Crutsinger and Daniel Wagner, Newser.com

The 2008 deficit, the previous record holder: $462 billion. The 2009 deficit: $1.42 trillion, three times larger than the largest deficit on record. And to think some in Congress are calling for Stimulus II.

You can see the effect on the National Debt at our running counter on the right. We hope US citizens are saving money to pay all this back. Either that or voters might want to start thinking about replacing this administration.

• Liquidity Conflict in the U.S. Economy – Spenders vs. Savers The Credit System is on Life Support There was another round of dire warnings issued from Washington yesterday, capped off by a somber speech from President Bush.  The fundamental message is consistent:  The credit markets are clogged.  There is not enough flow of money from lenders to borrowers to support......
• Net Worth Update - May 2007 Since it's the middle of the month, it's time to update my net worth. I actually updated it a day or two ago on the website. Did you notice? For the second month in a row, things moved significantly in the right direction. I was aided by a tax return......