Government's Budget Deficit Surges to $113.9 Billion in February

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGBLWG3D56E.html

WASHINGTON (AP) - The federal government ran a record monthly deficit of $113.9 billion in February, a sizable worsening of the budget picture compared to a rare surplus recorded in January, the Treasury Department reported Thursday.

However, even with the February deficit, the red ink for the first five months of the budget year is running 2.2 percent below the red ink for the same period a year ago. The total deficit from October through February this year was $223.4 billion compared to $228.5 billion for the previous period.

The Bush administration is projecting that this year's federal deficit will hit an all-time high in dollar terms of $427 billion, surpassing last year's record of $412.8 billion.

However, the Congressional Budget Office is projecting a lower deficit for this year of $394 billion, including Bush's supplemental requests to Congress for funding the Iraq war, and many private economists are also forecasting that this year's deficit will be slightly lower than last year's record.

more

[Up2Late]

1. O.K. Now compare how a Newswire WITHOUT a RW bias (Reuters)...

(...reports the same story. Any more questions of were the AP's loyalties lie?)

Budget Deficit Widens to Record in Feb.

Thu Mar 10, 2005 02:54 PM ET


WASHINGTON (Reuters) - The United States posted a record $113.94 billion budget deficit in February, above most Wall Street forecasts, as higher government receipts were not enough to cover a spending increase.

The February deficit, reported on Thursday in the U.S. Treasury Department's monthly budget statement, exceeded the $96.70 billion budget deficit in February 2004.

The government took in $100.87 billion in February, nearly $9 billion more than a year ago, but outlays rose more than $26 billion, causing the budget gap to stretch.

Still, the U.S. government is in a better position so far this fiscal year compared to where it was in February 2004.

(more at link)
<http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7869239&src=rss/businessNews>

[maggiecleveland]

2. Sounds like the government is spending too much...

sure wish I could live like that!

[Amfortas]

3. Kick!

[Up2Late]

4. Kick n/t

:kick:

[Tweed]

5. Man, it sounds like they need to declare bankruptcy... oh wait...

They screwed themselves on that one!

[Up2Late]

6. Update:Trade Gap Widens in Jan. on Import Surge

(Could someone explain this to me. What the HELL is it AP talking about when they said Yesterday in the story above, when they said, "...compared to a rare surplus recorded in January..."?

See todays report from Reuters and I think you'll see my confusion.)

Trade Gap Widens in Jan. on Import Surge

Fri Mar 11, 2005 09:14 AM ET

By Tim Ahmann

WASHINGTON (Reuters) - A surge in imports of consumer goods pushed the U.S. trade deficit to a wider-than-expected $58.3 billion in January, the second biggest on record, the government said on Friday.

U.S. exports rose 0.4 percent to a record $100.8 billion, the Commerce Department said. But a 1.9 percent jump in imports, which also hit an all-time high at $159.1 billion, swamped the export gain and led to the biggest trade gap since November's record $59.4 billion shortfall.

Wall Street economists had expected the trade gap to widen slightly to $56.5 billion from December's originally reported $56.4 billion shortfall. December's deficit was revised to $55.7 billion.

The U.S. dollar initially dropped but rebounded, and bond prices slipped on the data. Stock index futures were little changed. Gold prices, which were down earlier, rose to a fresh 2005 high.

(more at link)

<http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7878346&src=rss/businessNews>

[BrotherBuzz]

7. "A million here, a million there and pretty soon....

you're talking about real money" (our money) - Everett Dirksen

[The_Casual_Observer]

8. It's that good bush economy. Put a dolt in charge of policy and this is

what you get every time. I love the way the freepers say that they don't care about the economy, only defense. Without an economy, there isn't any need for defense, since there won't be a society to defend.