U.S. Posts Largest Monthly Deficit In Its History
According to the Congressional Budget Office, the U.S. federal government’s spending in February exceeded revenues by $223 billion. This staggering number is the largest American monthly deficit in history, and actually exceeds the entire U.S. government deficit for all of 2007, just prior to the onset of the global financial and economic crisis.
The monthly deficit number released by the CBO, combined with projections for a record federal deficit for 2011, clearly shows that the United States is trapped in a spiral of structural mega-deficits, which are unsustainable and will inevitably lead to a sovereign debt collapse for America. This is made more certain with the continuing proof that the American political establishment is totally useless in responding to this acute fiscal emergency.
Sooner and not later, market forces, in particular the bond vigilantes, will intercede where the politicians in Washington have failed. The result will not be pretty, for the U.S. and entire global economy.
