Wednesday, January 12, 2022

Alert : The US Budget Deficit Blows Out Of Control !!

Alert : The US Budget Deficit Blows Out Of Control !!

Economic Collapse 2022 : Uncle Sam is Spending Us Into Oblivion !! The US federal government ran a budget deficit of over $1 trillion . All this while The government debt currently stands at $23 trillion, if we divide this by the total population of America, then we get a $70293 debt burden for each and every American citizen, including newborns. In December, The US Treasury spent $13.3 billion more than it pulled in, and while the month's budget deficit was moderately better than the $15 billion anticipated, it was practically unchanged from the $13.5BN deficit recorded in Dec 2018. Total December spending of $349billion, was 7.5% higher than a year earlier, with the biggest outlays for the month as follows. social security ($88BN), national defense ($62BN), Health ($49BN), Income Security ($39BN), Net Interest ($34BN), which was more than Medicare spending for the month ($26BN) and so on. But spending didn't slow in the first quarter of fiscal 2020. Through the first three months of the current fiscal year, the deficit bubbled to $356.6 billion. That's an 11.8% increase from a year ago and puts the deficit on track to eclipse $1 trillion in this fiscal year. In just three months, Uncle Sam blew through $1.16 trillion. Spending through the first three months of the fiscal year 2020 is up 6.5% over the spending through the first three months of fiscal 2019. What could go wrong? The end always has a beginning. 50 billion per month just on the interest. Printed and added to the debt. The snake is eating its' tail. And this is only the deficits that they will admit exists. I would bet there is off the books debt somewhere so the numbers don't scare people. Just look at the US Government Current Account Deficit that shows current obligations. This years budget deficits aren't even paying for that. They are paying for LAST YEARS. With all the off-budget items in 2019. The deficit was closer to $1.6 trillion. That's why the actual debt goes up by more than the deficit every year. Using basic maths and common sense, the ordinary person can see that printing money and fixing interest rates is nothing more than theft from society. We need a modern day Robin Hood to return this stolen wealth to the people. The US MMT (Magic Money Tree) will no doubt be shaken down by 'pork barrel' politics, but it will not save the corrupted system. It is not the end of the beginning but is the beginning of the end for the fiat debt based system! Used to be, Buy a cow, sell the milk. Or, Don't eat a chicken, sell her eggs. Make a profit. Used to be, you could afford to pay a reasonable interest to borrow the capital to do these jobs. Today, no one earns much profit. They just buy their own stock to drive up the price and earnings. People are replaced by machines, people not needed, kablooey, no money to buy milk or eggs. Or pay rent. Think this is sustainable? It ain't. If interest rates went back to normal, the global financial system would collapse, and most governments would be bankrupt overnight. The debt service costs would eat up every dollar of tax revenue and then some. The only way you get back to "normal" is through a giant reset. Write off every dollar of debt that was created since 2009. That would be a good start. During his campaign Trump promised he would eliminate the deficit in 8 years. Promises made, promises kept. All this "prosperity" Trump talks about wouldn't be there if not for the ability of the Federal Reserve to export the US Government debt via the petrodollar. This can't go on forever. Or can it. The banks will continue to buy treasuries based on basic math. Borrow at 1%; use 25% to buy treasuries at 0% to keep the market afloat; use 75% to purchase assets which grow by 10-20% because you are working with the FED to keep the treasuries afloat. Its a pyramid scheme more than a ponzi scheme. As long as debt keeps going up, the pyramid is fed. Welcome to The Atlantis Report. The government expects to spend $4.746 trillion. Almost 60% pays for mandated benefits such as Social Security, Medicare, and Medicaid. Interest on the US debt will be $479 billion. The US Treasury must pay it to avoid a US debt default. Interest in the approximately $23 trillion debt is already the fastest-growing federal expense. Talking about how the Fed is Spending Us Into Oblivion. Economist Peter Schiff wrote in his latest blog : The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued by the Treasury Department. That continued a rapidly accelerating upward trajectory. The 2019 budget gap was 17.1% bigger than the 2018 deficit, which was a 28.2% increase over 2017. The budget deficit for fiscal 2019 (October 2018-September 2019) came in just under $1 trillion at $984 billion. That represented 4.7% of GDP, the highest percentage since 2012. It was the fourth consecutive year in which the deficit increased as a percentage of GDP. The debt-to-GDP ratio is estimated to have grown a hefty 26% over last year. The CBO estimates the budget deficit for fiscal 2020 will eclipse $1 trillion. These are the kind of budget deficits one would expect to see during a major economic downturn. The federal government has only run deficits over $1 trillion in four fiscal years, all during the Great Recession. We're approaching that number today, despite having what Trump keeps calling "the greatest economy in the history of America." Generally, during economic expansions, government spending on social programs shrinks, and tax revenues climb with increased economic activity. Revenues have increased over the last year, even with the Republican tax cuts, but they haven't kept pace with the increase in government spending. Meanwhile, the national debt has climbed to $23.2 trillion. To put that into perspective, last February, the national debt topped $22 trillion. When President Trump took office in January 2017, the debt was at $19.95 trillion. That represented a $2.06 trillion increase in the debt in just over two years. The borrowing pace continues to accelerate. The Treasury borrowed $800 billion through just two months late last summer. . The big deficit and debt numbers make for splashy headlines, but the mainstream mostly ignores the ramifications. Politicians make vague promises about cutting spending at some undetermined time in the future, and policymakers offer enthusiastic assurances that economic growth will fix the budget problems. But in truth, government debt and spending retard economic growth. Europe's spending binge serves as a prime example. The reality is America's fiscal condition is circling the drain. During the presidential campaign, Trump promised to deal with the skyrocketing national debt. In fact, he said he could take care of it "fairly quickly." But the president hasn't even played lip-service to reining in spending, instead, calling for more outlays for the military and championing paid parental leave for government employees. Of course, Congress also bears a great deal of responsibility for Uncle Sam's fiscal malfeasance. And spending money the Treasury doesn't have is a bipartisan game. The Democrats are unapologetic big spenders, and while the GOP talks a good game, the sucks money from the public trough at an equally fast rate. The bottom line is that the spending trajectory is unsustainable. If the US government is running $1 trillion deficits now, what will the country's financial situation look like when the next recession hits. Congress and the president can continue to kick the can down the road, but they are about to run out of pavement. We will increase the national debt by over $1.4 trillion. I saw that interest was climbing as well. Like last year, the deficit will rise regardless of receipts. This means the government will spend as much or more than it takes in, with zero accountability for its spending. The so-called entitlements are growing at a record pace as vast amounts of fraud and outright looting occur with increasing frenzy, encouraged by pay-to-play buying political class votes for the Military–industrial complex in its $738 billion annual spree. Where are the hypersonic missiles Russia has, though they spend 1/10th as much? None of the spendings makes any sense. The Boomer asshat world requires more debt ever to be put on the backs of the people who really work, who must trade their future labor to pay off debts incurred for others--parasites all--who feed at the trough of public borrowing. At least with tax and spend, those who make the most don't just benefit the most. The Republicans reckless spending puts old school Democrats to shame for their fiscal conservancy. I guess the GOP is too buddied up in our crony capitalist system to bother collecting sufficient revenues, or restraining to any degree its spending. Who's to defend the unborn and their financial interest, sacrificed for the profits of the few, who grow insanely rich with the trillions of low-cost borrowing fed into the stock market through buybacks. The Federal Reserve self-appointed role as protector of the market ("stability" to be preserved--its new, third mandate) has goosed rates to artificial lows (ignoring the vast supply of debt, both federal and corporate), with the concordant speculation now ballooning markets well past the '08-9 crisis. Today's financial chicanery is based on what Naomi Klein calls disaster capitalism: undermine regulation, create the eventual fail, let the system fail, then blame the captured regulators and public for the fail. Then demand infinite liquidity/bailouts for being not the cause of the crisis but systematically Too Big To Fail. This form of corporate socialism for the rich is already devastating young Americans' impressions of free-market capitalism. Just wait for the war and draft--to justify the Military-Industrial Complex's spree--to mobilize the lurch towards outright redistribution of wealth. Ups and downs are natural, serve a purpose, can't be stopped by the Fed, nor should the attempt be made. Everything runs in cycles, when our government overlords try to stop the inevitable, they only create unintended consequences. They don't fix a damn thing. Banks need to be in control of pricing for their products, NOT government. The Government doesn't know the first thing about risk, cost, or business. It's all done for someone's benefit, and that someone is not you. And the Central Bankers are protected from the effects of the policies they push on us. They have inflation-protected pensions awaiting them,but what of us? Royalty, Elites, Ruling class...UNELECTED , are terms that come to mind. "Let them eat Inflation." Moneychanger ;Philosopher's Stone Alchemist ; Banksters and Financiers. None of these people in the history of mankind have had a shred of love for anything but Mammon. Money is the sum of Time plus Energy and is always in a state of flux. The aforementioned want their version of money to be used so you can be taxed and charged by them for its use. It's also the reason they need their economy to keep going, for, without it they may actually have to perform some labor to quantify their existence. Not to worry , Trump the math genius said he'll balance the budget with a penny here and a penny there. Imagine if this wasn't the best eCONomy ever, and the biggest bubble ever was not being pumped with NOT QE. It's almost surreal that people think Trump is a conservative. Well at least we're still paying tariffs (taxes) on imported crap. People actually thought they were getting a tax break. When the next recession comes, the best medicine will be to let the thing burn out of control like an Australian brush fire. Maybe we will be lucky to see the crispy corpses of bankers left behind. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank you.

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