Early indications are that fiscal 2010, which is about one fourth over, will come in at a record $1.6 trillion deficit. And fiscal 2011, despite all the budget discipline rhetoric of the State of the Union speech, will rack up $1.3 trillion (a likely understatement) and the trillion or so dollar deficits will extend as far into the future as anyone can see.
This means two things: first, the size of government is still expanding and two, we are continuing to rack up debts that we have no hope of every paying in the typical fashion. So, what is our future? Massive inflation? Debt repudiation? Neither looks good.
We need to limit the size of government, get the economy back on track, and demand fiscal discipline. That's how we do the household budget, that's how Washington is going to have to learn to work.
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