United States's Largest Deficit Ever Amounting to $1.42 trillion!!!

Despite lots of efforts by the United States government in stabilizing the financial system and to jump-start the economy, the federal budget deficit reached $1.42 trillion as the recession caused huge amount of tax revenues to plunge.

Sept. 30 was the end of the budget year wherein the imbalance was more than tripled compared to last year's record. The Obama administration's forcast a total of $9.1 trillion over the next decade if no necessary actions will be taken. According to government data, the deficit stands at a rate of 10 percent, the highest rate the United States ever had since World War II.

President Barack ObamaBarack Obama promised to reduce down the deficit right after the so-called "Great Recession" ends and unemployment rate starts falling. On economists point of view, the government lacks the will to make hard political choices to cut spending and raise taxes to gain control of the deficit.

White House budget Director Peter Orszag said "It was critical that we acted to bring the economy back from the brink earlier this year. The president recognizes that we need to put the nation back on a fiscally sustainable path".

Economists fears investors will grow fearful of the nation's ability to repay all the country's debt unless both the administration and Congress will develop credible plans on how to deal with the deficit was the recession ends.