Financing

http://tinyurl.com/mth2b2
Administration raises 10-year deficit to $9 trillion

http://tinyurl.com/mbdjc6
February promise to cut deficit in half by end of first term

Let me begin this post by defining a budget deficit. If you decide to spend more money this month than you take in, you would be operating in a budget deficit. Although risky, these actions do have a place in business and personal life; we've all floated a check due to low balance or moved a debt onto credit cards to hold off payment till a later date. The choice of deficit is not necessarily right or wrong, but rather the outcome of circumstance.

The more important consideration of 'wise or foolish?' with these actions is often tied to the principal of the loan and the amount of time the debt will be outstanding. In the instance of a mortgage payment, needing money for groceries, etc., it is easy to understand the plight of the person in need, but when the debt is nearing the Gross Domestic Product and the term of the loan is in the parlance of generations, the ethical weight of the decision is increased exponentially.

Without making judgments as to the value of the myriad programs subsidized by the Federal government, it is still possible to look at the math of the subject objectively. The debt is simply too much.

The operation of all administrations during recent times have bought into the ideal of credit lines and payment deferral. When dealing with such an outlook the answer to the question of 'if' an entity will fail is obvious, the more intriguing inquiry is 'when?'