Large and sustained federal budget deficits are harmful to the fiscal health of the United States. Yet policymakers struggle with reining in the red ink. Even in times of economic growth, the federal government ran large and growing budget deficits, near $1 trillion per year. The U.S. budget deficit mushroomed by 2% last month to $209 billion, another step in a journey back toward 1 trillion dollars a year budget deficits. The Congressional Budget Office estimates that the federal government ran a deficit of $173 billion in June, the ninth month of fiscal year 2021. June’s deficit was the difference between $450 billion in revenue and $623 billion in spending. So far this fiscal year, the federal government has run a cumulative deficit of $2.2 trillion, the difference between $3.1 trillion in revenue and $5.3 trillion in spending. This deficit is nearly triple the shortfall over the same period in FY2019 ($1.5 trillion greater) but is 19% ($508 billion) lower than at the same point in FY2020. The deficit in 2020 totaled $3.13 trillion and is already at $2.06 trillion through the first eight months of the fiscal year. Total government debt is now $28.3 trillion, of which the public holds $22.2 trillion. As a result of multiple stimulus measures aimed at combating the pandemic's economic impact, Congress will run a budgetary shortfall this year equivalent to 13.4% of GDP. That's the second-largest level since 1945 and exceeded only by the 2020 spending. The federal government will be swimming in $3 trillion of red ink by the end of fiscal 2021, according to a Congressional Budget Office estimate released Thursday that swelled 33% from the last forecast. As a result of multiple stimulus measures aimed at combating the pandemic’s economic impact, Congress will run a budgetary shortfall this year equivalent to 13.4% of GDP, the second-largest level since 1945 and exceeded only by the 2020 spending. We're already asking Congress again to raise the debt limit to avoid a shutdown of the government. The budget deficit was 1.27 trillion dollars over the past 12 months. The nation's debt has increased by 6% for the past 12 months. Debt is rising faster than GDP growth. We live in an effed-up world where more debt is good, and nobody cares about next year; nevermind our kids' future. The best economy in the history of economics. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Thank You. Here are The numbers. U.S. deficit will total $3 trillion in fiscal 2021. The U.S. budget deficit passed the $2 trillion mark in May amid a continuing flow of fiscal largesse to a rapidly expanding economy, the Treasury Department reported Thursday. Government red ink for the month was just below $132 billion, the lowest monthly shortfall of the year but still enough to put the total deficit at $2.063 trillion. Tax receipts for the month totaled $463.7 billion, the largest influx since July 2020. Spending came to $595.7 billion, the lowest since February. Spending went up 6%, as expenses increased on Medicare, agriculture, military, and other programs. Spending rose on agriculture! A trillion dollars down, and trillions more to go and yet not one word from the White House about how to slow down the deficits. That in itself should be an impeachable offense. Receipts went up by 9%, comprising a higher collection of individual and payroll taxes and corporate taxes. Customs duties expanded by 14% for the month, as the trade dispute between the U.S. and China continues. Investors are looking next to December 15, when another round of U.S. tariffs on Chinese goods is due to begin. Spending rose 6%, tax receipts rose 9%, customs duties rose 14%. The proposed defense budget is $725 Billion, more than the rest of the world combined (excluding the EU, who I think is still on our side). Imagine, $725 Billion while Russia and China TOGETHER spent less than $300 Billion in 2019. If you want to take care of our children and elderly, you will need to think about adding something to the payroll taxes, even with rollbacks for defense. And with the Wars and Veterans Healthcare and Veterans Compensation for Disability’s caused by the wars (Vietnam, Iraq, Afghanistan) it a little over 1.2 TRILLION DOLLARS. While the costs are high, it is the money that magically disappears into the pockets of corrupt politicians and their friends that are a big problem. Without corruption, for the same amount of money, there would be funding for three times the number of people in the military and double the number of pieces of equipment(including jet fighters and such). Money is being stolen, and politicians don't seem to care. People look at the massive budget and don't pay attention to why it costs as much as it does for what they get. So here is The Big picture. For the first two months of the fiscal year, the deficit is 12% larger in comparison to the same period a year ago. The deficit is anticipated to surpass $1 trillion each year throughout the coming decade, as stated in an August analysis by the Congressional Budget Office. U.S. investors haven’t been scared off by the increasing red ink. The Dow Jones Industrial Average +0.79% is up about 19% in 2019, while the yield on the 10-year Treasury note went down to 1.81%. Also see: Biden eyeing more significant reduction to the corporate tax rate. That's only $80,600 per second. Those are rookie numbers. We have to pump those numbers up! As former Fed chairman Alan Greenspan said: "The U.S. can pay any debt it has because we can always print money to do that. So there is zero probability of default." Of course, those being repaid will be repaid with dollars that are worth less than they purchased the debt for. That is part of the Treasury game. But, yes, the Treasury can do that, at a price to the US economy. The debt problem is rooted in the monetary model. The only way this system sustains itself is by accumulating more and more debt. Spending money we don’t have , and have no reasonable way of ever paying back is a recipe for disaster. It's a recipe for 1923 style Weimar Germany hyperinflation. This is what happens when all you rely on is debt for greasing the wheels of your economy. So long, we are the world reserve currency; we export digital money. We import actual goods and products. But this will become a disaster if those countries changed their minds. We need to get our spending under control. But that isn’t gonna happen. This will continue to happen until the Central Bank gets shut down. This should not shock anyone. Hell the FED is pumping 200 billion a night into the repo market, what's the problem! "US investors haven't been scared off by the red ink" in fact markets skyrocket on the news because where do you think all that borrowed money could be going any way other than straight into the ever-soaring market. Fun thing to think about: How many companies propelling the stock market make their whole dime on government spending. Think real nice about it. Tesla is a perfect example of one that sneaks by you — predicated on taxpayer subsidies. Profitless with public dollars in the pocket. Think about that one and then the easy ones like Boeing, Exxon, Caterpillar. Remember, at the beginning of this whole rally, when Bernanke was smoking green shoots, and Bush was instituting mark to market Exxon reported making more money than any other company did in history that quarter. Then like the following year, they were in court asking to be excused from paying for the Valdez oil spill that happened about 40 years prior because they couldn't afford it. "The monthly deficit would have been greater had we not imposed tariffs on Chinese goods.We added a consumption tax since the United States does not produce its own good anymore. Everyone crying for the US-made goods better be careful what they wish for. You will end up paying three times more for all your consumables of inferior quality when Americans make them. In America, we have to pay for insanely high labor costs, poor management, outrageous taxes, zoning, and regulations, paid vacations, paid sick time, paid maternity leave, 4O1K's, pensions, overtime, certifications, high real estate and lease costs, unions, disability, frivolous workplace lawsuits, etc. globalists already won, The American manufacturing is dead in the water. America only prints 100 billion per day to keep fraud banks working. As long as we keep borrowing, our politicians will keep spending. It is making them look good, so they will do nothing to interfere with the excessive spending that is making them look so good. And at the same time, they are keeping their fingers crossed, hoping the crash will happen during the next person term instead of theirs. And it doesn't really matter what the interest is on our national debt. If it is 2%, we still have to pay 100% of the total back. And of course, They won't say a peep about this excessive borrowing to cover the costs of their spending. It makes the economy look good also.They can care less if all of America crashes, as long as the markets grow. At this rate, America will become bankrupt. And if it does happen, of course, they will blame it all on Powell. The Fed is holding about 10 Trillion, which is what 50% of GDP, for a grand total of 93% of GDP, so what the Fed is holding still does not explain the discrepancy. So if you move that actual line to the right, where it should be, we are only a couple of years away from what statistically puts us in the same category as Greece. In other words, our debt will never and can never be paid off, unless of course, we introduce a very punitive tax, a.k.a. Negative interest rates. Honest to God, the Fed knows no boundaries whatsoever. I suppose that is why there is a move afoot now in Britain (and in the US too), to stop counting the real debt levels and only consider the interest payments when budgeting. The deficit in 2020 totaled $3.13 trillion and already is at $2.06 trillion through the first eight months of the fiscal year. Total government debt is now $28.3 trillion, of which the public holds $22.2 trillion. The economic disruption caused by the 2020–2021 pandemic and the legislation enacted in response continues to weigh on the deficit (which was already large by historical standards before the pandemic. What comes after a trillion? Nuclear war with the countries we refuse to pay back? Or more “tax cuts and corporate welfare” for “trickle-down economics.” To say we are leaving our children and grandchildren with a substantial irresponsible mess is an understatement. I suppose it won’t matter either way because no amount of debt or a hefty bank account will help us breathe. All our disingenuous Presidents are trying to do is kick the can down the road and not lose the votes. They issue as much debt as it takes to be able to say "the economy is GREAT"; according to massaged rules that allow the so-called justification for such a statement. The same goes for USA company financial performance. Again, It's all corroded! The truth is that what we have is a debt-fueled HOUSE of CARDS. It's a WINCHESTER Financial House of Cards with secret areas full of debt and financial ladders that lead to nowhere. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe, sane, and healthy friends!
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