Just in case someone might have missed the news … the Federal Reserve Flow of Funds accounts for Q2 2009, places the US fiscal deficit (annual basis) at $1,294.9 billion. (Table F.106 Federal Government, line 17, Net Federal Government Saving NIPA basis)

This “Obama Deficit” is about six times the fiscal deficit for the year 2003.

	Obama administration falls off the cliff

The Rest of the World (which is already beginning to come out of the recession), is fleeing dollars, indicating that whereas President Obama may have earned the Nobel Peace Prize for what he has not yet done, he certainly has not earned good marks for his actual behavior on the economic front.

It should be noted that the Q2 2009 deficit numbers are before most of the “spending is stimulus” packages have kicked in, and certainly before the mad spending spree represented by Obamacare (Health “Reform”) or Cap and Trade legislation (supposedly directed towards the perceived imminent danger of “global warming”).

Please note that most of President Obama’s wild spending spree was his own doing (with the help of the Pelosi-Reid Congress) — not “inherited” from the Bush administration.

In order to avoid a high level of inflation and further deterioration of the US dollar, all this deficit spending will somehow have to be neutralized.

There is no clear plan, so far, as how this deficit will be unwound.

We’ll just have to see …