The federal budget went into deficit for the 15th straight month.
(CNNMoney.com) -- The U.S. government posted a deficit of $91.9 billion in December, nearly double the shortfall of a year earlier and marking the government's 15th straight month in the red, the Treasury Department reported Wednesday.
The shortfall brings the total deficit for the first quarter of fiscal year 2010 to $388.5 billion, up from $332 billion during the same period last year.
The fact that the budget deficit is running even worse than last year's should concern everyone. It's not like October-December period of 2008 had a strong economy.
The Treasury estimates the annual deficit will climb to $1.502 trillion for the full fiscal year 2010, up from $1.42 trillion in 2009.
The 2009 budget deficit was a massive $1.4 Trillion. A budget deficit of more than $1.5 Trillion would be sure to cause disruptions.
Interest paid on the debt in December was $104.6 billion -- 34% of federal outlays for the month.
34% of outlays just for interest on the debt is far too high. But when you factor in record low interest rates you quickly realize that any rise in interest rate payments will cause a crisis.