Reuters: U.S. deficit forecast masks true scope of problem

If America ran its books more like a business, the real state of its finances would be clearer. U.S. budget scorekeepers now predict a $1.34 trillion deficit for 2010, a tad less than forecast in March. Still, it’s an enormous gap. And the headline number lowballs the shortfall.

The first thing anybody should ask about a deficit figure is what the annual interest on it will be as part of the national debt and how the government expects to pay it.