Federal Budget

The Fed’s latest action does nothing to address the fundamental problem underlying the debt crisis. It’s often said that help comes to those who help themselves. But Europe can’t seem to help itself. So on Wednesday, the U.S. Fed came to the rescue. And that rescue triggered a global stock market rally, including [...]

We’re still a long way from solving the debt crisis. Investors threw a party yesterday, lifting U.S. stocks nearly 500 points on the Dow after the world’s main central banks joined to provide dollar liquidity to struggling banks. This makes sense to prevent intrabank markets from seizing up, but no [...]

With a November 23rd deadline only one week away, doubt continues to grow that the Supercommittee will meet it’s goal of cutting $1.3 trillion in U.S. sovereign debt. Republican members of the Committee are under fire from conservatives after expressing a more flexible attitude about including tax increases. Democrats are insisting that at least half of any debt reduction come from tax increases.

With the current state of the U.S. economy, the total amount of the U.S. federal deficit has significantly increased. The outstanding total public debt is currently amounting to $14.46 trillion based on June 2011 records.

Economists classify government spending into three main types: government final consumption expenditures, government investment or gross capital formation, and government expenditure for intermediate consumption.