October 2009 and America's financial situation worsens clocking in at 176 billion deficit.

This is a table of October's financial breakdown.  Top section is the receipts (income via taxes) and lower section is the government spending. Full report available from the Treasury.

As you can see, 135 billion was brought in and 311 billion was spent.   October's deficit is now at: 176 billion!!  This is the 5th worst performance this year so far in total debt, 4th worst performance in terms of revenues and 4th worst in terms of outlays.

Looking at the numbers, several things jump out.

National debt:  We paid out almost 22.8 billion in interest alone!  That is more than we spend on veterans.
National defense: We spent 67 billion on national defense.  This has grown too fast and MUST be scaled down.  We need to start closing down bases and seriously contemplate withdrawing from Afghanistan. (20 billion of this on operation/maintenance alone)
Social Security:  65 billion.
Department of health: 85 billion, although there is about 5-6 billion off budget.  If you look in the report, you will find that total spending for Medicare/Medicaid in October clocked in at 104 billion. Of that 22 billion came from the Medicaid insurance fund (taxes).  This is just obnoxious.  
Agriculture:  15 billion.  This consists of subsidies and programs that primarily began during the Great Depression.  This needs to be shut down, without question.
Education:  9 billion on education. Federal government moneys should not be spent on education, these are staggering numbers. 
Homeland Security:  4 billion.  We do not need another department, just because our existing intelligence agencies failed us on 9/11 does not mean that more government is the answer.  Shut this down!
Department of Labor: This is another tricky one where they are playing with numbers.  In October alone, 34 billion was spent on unemployment, but it was paid for by 22 billion from 'Intrabudgetary Transactions'.  This is defined as:

Intrabudgetary transactions are subdivided into three categories: (1) interfund transactions, where the payments are from one fund group (either Federal funds or trust funds) to a receipt account in the other fund group; (2) Federal intrafund transactions, where the payments and receipts both occur within the Federal fund group; and (3) trust intrafund transactions, where the payments and receipts both occur within the trust fund group

Understand?  Nope.  Either do I.  It remains unclear where this 22 billion came from.

Overall, this is a sobering reminder of how the government spends our money and I encourage you to look at the detailed breakdowns of the outlays.  With revenues falling nobody in government seems to raise the only plausible suggestion - CUT spending.  If you owned a business and profits fall by 30%, do you implement a new health care solution for your employees?  You would not, but this is exactly what our leaders are doing and it's absolutely maddening.  We cannot sustain this path and with these kind of numbers, recovery is nothing more than wishful thinking.