MeMelYup wrote:Please explain how our deficet can be lower in 2011 that 2010 when the congress had to raise the debe ceiling?
Like the OP wrote, its "the annual deficit, not the total debt" but a lot of people seem to be missing the difference, so let me try an example. If a household spends $300 less than their income each month, that's a $300 budget surplus. If a household spends $300 more
than their income each month, that's a $300 budget deficit
. They can have a $300 deficit one month and a $250 deficit the next, and their debt will increase both months.
I think the important part of the article is the real deficit is higher than reported, which means the debt probably is too. (And this is coming from USA Today, not some Crazy Uncle.) Companies have to follow certain accounting rules so investors and creditors know a fair measure of the companies' finances. The federal government doesn't follow those rules. If they did, the real 2011 deficit would be $5.6 Trillion
for that one year, instead of the $1.3 Trillion deeper hole they reported. That means the sovereign debt problem in the United States is probably much worse than the politicians will admit. Many reputable sources say unemployment is also higher than reported by the government.
Draw your own conclusions why they're not being honest with the citizens. And what you need to do to about it.