The federal deficit is at a post-WWII high as spending is increased by as much as 20% over a year ago. Most of our spending was allocated to Medicare, Social Security and Income Security. This is normal when a country is going through a recession; however the double digit percentage gains in spending are still very large despite the recession.

Tax revenues and corporate income taxes have also fallen at double digit rates. It is no mystery where our economy is heading. One can expect a bigger deficit down the line and the downward pressure for a little while to come. This will also continue to drive the global economy lower as deficits are running high all around the globe.

What are your views on the matter? How years before we should start seeing a turnaround in the Federal budget?

Post your comments and concerns below or email them to psingh@rempower.com!