by Calculated Risk on 7/03/2006 01:46:00 PM

For the first nine months of the 2006 fiscal year (starts Oct 1st), the National Debt has increased $487.3 Billion. The record is $491.1 Billion for the first nine months of fiscal 2004.


Click on graph for larger image.

As a percent of GDP, the deficit has improved slightly over the last few years.

The annual increase in the debt is running around 4.5% to 5.0% of GDP. This is a classic "structural budget deficit" or "high employment deficit" - something most economists believe should be avoided.

If someone says the deficit is falling - laugh (or cry). Its not true. For an explanation, see my post on Angry Bear: Budget Metrics and the Cheating Clotheshorse