The Treasury Department has officially added up all the zeroes and have proclaimed the FY 2010 budget deficit to be $1.29 trillion:
The Obama administration is set to report Friday that the federal budget deficit exceeded $1 trillion for the second straight year, providing critics of government spending with fresh ammunition ahead of the midterm congressional elections.
The Congressional Budget Office is projecting that the deficit for the 2010 budget year that ended Sept. 30 will total $1.29 trillion. That's down by $125 billion from the $1.4 trillion in 2009 - the highest deficit on record.
Soaring deficits have become a problem for Democrats in an election year focused on the weak economy.
Republicans have tapped into voter angst over the deficits, using the $814 billion economic stimulus and $700 billion Wall Street bailout to paint President Barack Obama and his party as big spenders.
Democrats say the recession would have been worse if the government didn't step in with those programs to prop up the economy. They also note that most of the bailout, which began during the Bush administration and was supported by many Republicans in Congress, has been repaid.
Most of the bailout has not - repeat not - been repaid. Not even close. The government gave GM and Chrysler more than $70 billion that will probably never be repaid because they were given as grants, not loans. And how many trillions has the Fed doled out under its various programs to prop up the economy? There are hidden costs in those expenditures, including interest added to the debt. The drive for liquidity last year added several tens of billions of dollars that are simply off the books and will never be paid back because no one really knows how much was given out and who got it.
Then there's the moribund TARP II and other programs like the mortgage bail out scheme where consumers are failing to pay what they owe at a 50% rate. You can say that most of the "bail out" money has been paid back if you are very selective and lie through your teeth - something Obama and the Democrats are perfectly willing to do.