31.   Rising government deficits generally hurt bonds because they mean more bonds must be sold to make up the shortfall.

32.   Secondly, there were huge government deficits.

33.   Some of those same economic concerns exist in Canada, which faces growing government deficits and a resurgence in the movement for Quebec independence.

34.   Supported by these funds, these corporations and banks have funneled money into inefficient projects and loans, swelling the government deficit, economists say.

35.   Tax reform is also being prepared to help bring down the government deficit next year.

36.   Strong tax revenue reflecting the robust economy is helping reduce government deficits, allowing the Treasury to borrow less in financial markets, bolstering the price of its securities.

37.   That is why Maastricht set limits on government deficits and the accumulation of government debt.

38.   That could create inflation or a government deficit, either of which would be problematic.

39.   That provides the funds that can be used to help finance the government deficit without putting too much upward pressure on interest rates.

40.   That will translate into a smaller government deficit, lower interest rates and a prolonged economic expansion.