US posts record budget deficit: $374 Billion

The U.S. government posted its largest budget gap in history in the just-ended 2003 fiscal year, $374.22 billion in red ink, the Treasury Department said on Monday.

The record gap will likely fuel political bickering over the deficit. The previous record deficit was posted by President Bush 's father, and was a major issue in his losing bid for reelection in 1992. In 2000, the government posted a record surplus of $236.92 billion.

Like father, like son. Should be able to shut down all entitlement programs in a few quarters… and cut taxes for the rich some more!

It’s even worse. They’ve used fradulent economic practices - or, at least, highly questionable ones - to disguise the true depth of the defecit, by shuffling money out of social security and using it to mask just how far we really are in the red. Krugman’s written some good pieces on this.

On a coincidental note, I was looking at some inflation-indexed bonds this morning…