What happens when voracious spending exceeds revenues taken in by the Treasury?! A BOOMING federal deficit that has now topped $1 trillion for the first time ever.

The national debt is the total of what we owe ($11.4 trillion) as a nation to investors, mainly China. The deficit is the annual amount that is being added to the national debt.
Interest payments alone on the national debt is over $450 billion a year. This is nothing more than a gigantic Ponzi Scheme Team Obama and the Dems are saddling us with.

The US has already spent more than a TRILLION dollars than it expects to receive this year in revenue, and we have almost three full months left to go. The Wall Street Journal wonders whether that will hinder Barack Obama in getting his big-government spending plans through Congress, and whether Congress has the will to address runaway deficits at all.

In spite of the booming deficit, government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent. Remember, if government spending got us out of recessions, why would we ever have recessions? We’d just spend our way out of everything.

To my democratic friends, please tell me again about the promises of fiscal reform and stimulus. Perhaps this time you can use an illustration to help explain just how well the massive spending plans are working. Allow me to start by showing you my illustration as provided by the WSJ. It explains government spending and receipts between this year and last:

As HotAir notes: Obama will claim, of course, that he inherited this deficit from George Bush, but as I’ve pointed out a number of times, it’s simply not true. Bush did not get a chance to address the FY2009 budget, as the Democrats in Congress kept postponing budgeting for FY09 until Bush left office. Even more critically, Congress spends the money, and since January 2007, Congress has been controlled by the Democrats — including then-Senator Barack Obama. Bush did approve the TARP funding and the Fannie/Freddie bailout — with considerable pressure from Congressional Democrats to do so — but a look at the right-hand side of the above graphic shows that spending significantly increased from FY08 to FY09 even without the bailouts. Most of the increase came from the “Other” category: non-defense discretionary spending, and the rest from entitlement expansion.

Barack Obama’s domestic agenda promises to make all of these conditions even worse. He wants to create a massive expansion of Medicare’s purview, which will greatly increase the entitlement burden that already threatens to undermine the stability of America’s currency and credit. On top of that, Obama wants to impose an energy-rationing system that will make the recession even worse, lowering receipts from almost all categories except the “other” category as DC reaps the taxes it imposes on energy producers. And on top of that, Obama wants to force American companies to pay taxes on foreign profits — almost alone among Western nations — that will force multinationals to reorganize overseas to avoid the competitive disadvantage Obama’s policies impose.

Those receipts will keep declining, and the spending will continue to increase. We will look at the $1,000,000,000,000 barrier with nostalgia in a very short period of time.

Perspective: By historical standards, the 2009 deficit — at 13% or more of the country’s gross domestic product — would be the U.S.’s biggest since the end of World War II in 1945, when it reached 21.5%.