We give you two posts. The first is a review of the 2009-2010 budget, Obama's first and the second shows how budgets are created.

--- Updated 27 January 2010--- About the FED The bar chart is created using data found in the Monthly Treasury Statement, published by the U. S. Treasury Department. Your money is spent through U. S. Senate Appropriations Bills. The "estimate bar" (in the "Debt Total" box) for the current Fiscal Year (FY), is generated by NDAC analysts from data published by the Congressional Budget Office and several other sources. Press Release on Tax Code and the IRS.

--- "Budget Deficit" vs. "National Debt"--- Suppose you want to spend more money this month than your income. This situation is called a "budget deficit". So you borrow (ie; use your credit card). The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you don't have enough money to cover your spending (another deficit), you must borrow some more, and you'll still have to pay the interest on the loan. If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment, and you don't have any money left over for anything else. This situation is known as bankruptcy. Each year since 1969, Congress has spent more money than its income. The Treasury Department has to borrow money to meet Congress's appropriations. We pay interest on that huge debt. And now the Treasury is having trouble finding lenders!