One thing to remember, January is traditionally a month that the government posts a surplus.
The U.S. budget deficit widened more than economists forecast last month as spending soared and corporate tax receipts shrank, putting the Treasury on course for a record annual shortfall of more than $1 trillion.
The excess of spending over revenue in January rose to $83.8 billion, compared with a $17.8 billion surplus in the same month a year earlier. Spending gained 30.6 percent, while revenue dropped 11.4 percent. Corporate tax revenue in the past four months is down 44.3 percent from a year earlier.
The deficit four months into the 2009 fiscal year already is higher than the record for all of the previous year.
And this is before the Stimulus bill and the new Wall Street bailout. I have to ask the question I always ask on this topic - where is the money going to come from?