Where do I arrive at this number? Well the DR put together the two deficits for 2010 & 2011 for us. These are from the government's own numbers mind you:
http://dailyreckoning.com/economic-recovery-the-unresolved-mysteries/The amount of the budget itself is staggering. That’s a lot of money. But even more staggering is the glaring omission: the Obama administration is planning to spend $1.6 trillion it doesn’t have. And that’s on top of the $1.35 trillion it didn’t have, but nevertheless spent, last year. Where is all this money coming from? Another mystery…Let’s see…put those two deficits together and you’ve got a budget hole as big as the Milky Way… Nearly $3 trillion, or more than 20% of GDP.
So that is one trillion less then the amount I posted in the title right? Will here is the other trillion:
http://usawatchdog.com/real-deficit-numbers-and-real-consequences/I asked economist John Williams of shadowstats.com to weigh in on last year’s record $1.4 trillion of red ink for the “real” deficit number. Williams told me, “It was closer to $2 trillion because they knocked off $500 billion with accounting gimmicks.” Just because the government knocked off a half trillion bucks using an accounting gimmick, doesn’t mean we owe any less. The reduced number just doesn’t look quite as ominous. Another way to state the $2 trillion of red ink from last year is $2,000 billion! It is a very big number, even for the U.S.In its latest budget, the White House is projecting $1.56 trillion in red ink, and that is another new record! What will the “real” deficit be when the year is over? Williams says, “With a weaker than expected economy, the 2010 deficit likely will top $2 trillion…” So, according to Williams, the government probably understated the “real” red ink this year by another half trillion bucks. If this analysis turns out to be correct, then the government will have understated the red ink by at least $1 trillion in the last 2 years alone!
Now lets assume for a moment that John is wrong and the government is (I'm holding in laughter here) honest about its projected numbers. How often does the government come in under budget? You might be searching for a while. And you are not buying silver and gold right now cause why?
