Federal deficit tops $1 trillion through June

The federal deficit has topped $1 trillion with three months still to go in the budget year, showing the lasting impact of the recession on the government's finances.

In its monthly budget report, the Treasury Department said Tuesday that through the first nine months of this budget year, the deficit totals $1 trillion. That's down 7.6 percent from the $1.09 trillion deficit run up during the same period a year ago.

The budget deficit as a percentage of GDP has improved to 9% in June 2010. This, despite the economic recovery, is only a marginal improvement from the December 2009 low of 10.2%. Gold relentless march higher suggests that it has not missed this point.

US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed:


Source: yahoo.com