The House of Representatives’ decision made at the beginning of August to raise the US debt ceiling, coincides with the growth in US Federal deficit: according to the recent publication of the Monthly Treasury Statement, the US government deficit grew in August 2011 by $134.154 billion; this an increase of $4.77 billion from the $129.376 billion deficit recorded in July 2011, and an increase of $43.626 billion from the August 2010.
The current deficit in the fiscal year of 2011 is $1,234 billion, which is lower by 2% than the $1,259.5 billion deficit recorded during the same time span in 2010. Up to August, there was an increase in revenues of 7.6% in 2011 compared with 2010’s that put a small dent in the deficit growth. On the other hand, there was also a moderate increase of 3.8% in total expediters in 2011 compared with the parallel time in 2010 that contributed to the growth of the deficit.
At the current rate, the 2011 fiscal year might end at a $1.3 trillion deficit, which is still high and represents nearly 9% of US’s GDP in 2011.
The financial markets didn’t seem to react much to this news as the US stock market ended yesterday on a rise.
Current gold price, short term futures (October 2011 delivery) is traded at $1,827.2 per t oz. a $2.9 decrease as of 08:21*.
Current Nymex crude oil price, short term futures (October 2011 delivery) is traded down by 0.95%, as its at $89.35 per barrel as of 08:30*.
Euros to US dollar exchange rate is currently traded up at 1.3657 a 0.1572% increase as of 08:34*.
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