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Deficit Surprise: US Pays Down National Debt
ABC News ^ | 05/19/2013 | Richard Davies

Posted on 05/19/2013 5:18:06 PM PDT by SeekAndFind

For the first time since 2007 – before the recession – the US Treasury is planning to make a down payment on the federal debt. The budget deficit has been shrinking more than expected. Thanks to government spending cuts, and higher tax receipts The Treasury says it expects to pay off $35 billion of debt in the second quarter. That compares to an earlier forecast that it would have to borrow $103 billion.

Usually this time of year is the best for government cash flow because annual tax returns flood into the Treasury in April. But the return to at least one quarter of debt paydown is a clear sign government spending cuts and tax increases have helped lower the deficit.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: bs; budgetdeficit; debt
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1 posted on 05/19/2013 5:18:06 PM PDT by SeekAndFind
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To: SeekAndFind

Riiight. And at the same time Obama’s asking for another debt limit increase!


2 posted on 05/19/2013 5:20:22 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: SeekAndFind

Un huh.


3 posted on 05/19/2013 5:20:23 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: SeekAndFind

40 million U. S. workers idle, many of them getting government benefits of some sort, and we’re paying down the debt?

I’m not sure what medication they’re passing out in D. C., but it must be a long acting gigantic pill.


4 posted on 05/19/2013 5:20:52 PM PDT by DoughtyOne (Funny thing happened on the way to the Constitution burning, Lefties rights were violated...)
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To: SeekAndFind

So how does this work? The Treasury prints a bunch of money and pays themselves back?


5 posted on 05/19/2013 5:21:40 PM PDT by FlingWingFlyer (If you think ObamaCare is a train wreck, wait until you see the amnesty bill.)
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To: SeekAndFind

Btw, what government spending cuts? They haven’t cut a dime.


6 posted on 05/19/2013 5:22:18 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: SeekAndFind

So.... We are still increasing total debt by ~$1 trillion annually, but we made a $35 billion principle payment. Therefore, “we are paying down the debt.”

My God, people must be stupid.


7 posted on 05/19/2013 5:24:31 PM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: SeekAndFind
But the return to at least one quarter of debt paydown is a clear sign government spending cuts and tax increases have helped lower the deficit.

No it doesn't.

All it means is that a lot of income like cap gains and dividends were accelerated into 2012 to avoid a possible large tax increase that might have happened in 2013.

The 2nd quarter tax receipts reflect 2012 income for april 15. Also estimated taxes for people who file quarterly are based on 2012 income so those are higher even though they are likely overpaying due to income getting moved from quarter 1 of 2013 to quarter 4 of 2012

8 posted on 05/19/2013 5:26:15 PM PDT by staytrue
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To: Jim Robinson
Btw, what government spending cuts? They haven’t cut a dime.

Don't tell the military that. The ships are at the pier and the planes are on the ground. No entitlements got cut, of course, but the military is suffering.

9 posted on 05/19/2013 5:26:58 PM PDT by Pan_Yan (I believe in God. All else is dubious.)
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To: DoughtyOne

“...it must be a long acting gigantic pill.”

A suppository, actually. And, it’s for us, not them. These hallucinations they are having is from the ganja in the WH.


10 posted on 05/19/2013 5:27:54 PM PDT by PubliusMM (RKBA; a matter of fact, not opinion. 01-20-2016; I pray we make it that long.)
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To: staytrue
All it means is that a lot of income like cap gains and dividends were accelerated into 2012 to avoid a possible large tax increase that might have happened in 2013.

I'm sure there are armies of tax attorneys trying to figure out the best position to be in when ObamaCaraMageddon strikes in January.

11 posted on 05/19/2013 5:28:32 PM PDT by Pan_Yan (I believe in God. All else is dubious.)
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To: PubliusMM

LOL


12 posted on 05/19/2013 5:29:22 PM PDT by DoughtyOne (Funny thing happened on the way to the Constitution burning, Lefties rights were violated...)
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To: Jim Robinson

It is “a cut from the increase.”


13 posted on 05/19/2013 5:30:31 PM PDT by Wyrd bi ful ard (Gone Galt, 11/07/12----No king but Christ! Don't tread on me!)
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To: SeekAndFind

On a personal note, I accelerated 100k of cap gains into December of 2012.

My income for 2013 will likely show about a 150,000 drop from 2012 with only 30,000 drop from business falling off while 120,000 fall is due to tax planning.


14 posted on 05/19/2013 5:30:35 PM PDT by staytrue
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To: SeekAndFind

That is like saying I am only drinking 5 beers/day instead of 6...so I am alcohol free!


15 posted on 05/19/2013 5:35:47 PM PDT by entropy12 (Even tho Obama is now a lame duck, with 2014 House majority, he will be a dangerously socialist!)
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To: SeekAndFind
Obama can’t prove that he has had any math training let alone Economics.
16 posted on 05/19/2013 5:36:32 PM PDT by mountainlion (Live well for those that did not make it back.)
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To: SeekAndFind

Projected debt maybe??


17 posted on 05/19/2013 5:41:42 PM PDT by Forrestfire (("To educate a man in mind and not in morals is to educate a menace to society." Theodore Roosevelt))
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To: SeekAndFind

I blame the Sequester.


18 posted on 05/19/2013 5:46:03 PM PDT by NoLibZone (None here can be puzzled by why Jews walked into the cars so quietly- we are walking up the planks.)
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To: SeekAndFind
yeah, right...

19 posted on 05/19/2013 5:47:28 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: SeekAndFind
Wow. Such a “feel good” report. On top of all the other lies.
20 posted on 05/19/2013 5:50:16 PM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: SeekAndFind

They’re saying that at the beginning of the third quarter, the total national debt will be lower than it was at the end of the second quarter. Or something like that. How do you run a trillion dollar deficit and make that claim?


21 posted on 05/19/2013 5:51:55 PM PDT by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: SeekAndFind

Wow! Now we can drop all of these “scandals” and words like “impeachment” because he’s saving us from the debt!/S


22 posted on 05/19/2013 5:54:07 PM PDT by MacMattico
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To: SeekAndFind

Don’t we officially run out of money this week?


23 posted on 05/19/2013 5:57:29 PM PDT by RS_Rider (I hate Illinois Nazis)
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To: SeekAndFind

This is total BS...


24 posted on 05/19/2013 6:04:12 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: staytrue

Great post!


25 posted on 05/19/2013 6:06:42 PM PDT by DemforBush (Bring me the head of Alfredo Garcia!)
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26 posted on 05/19/2013 6:15:03 PM PDT by RedMDer (May we always be happy and may our enemies always know it. - Sarah Palin, 10-18-2010)
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To: SeekAndFind

Still running a deficit means money has to be borrowed and the debt is higher but....a pay down on the increased debt is surprising? Yes, it is surprising, surprising how stupid they think we are that it can’t be seen as the nonsense that it is.

Higher tax revenue and spending cuts mean the deficit is not as much as expected but it’s still a deficit and it still means money needs to be borrowed ergo the debt is increased.

Clinton was good at these games. Obama is lame at it but is good at intimidating the press and others, so expect it to run in the press for awhile to talk up his ‘accomplishment’.


27 posted on 05/19/2013 6:18:34 PM PDT by Hostage (Be Breitbart!)
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To: SeekAndFind

A feat of bookkeeping legerdermain.


28 posted on 05/19/2013 6:20:26 PM PDT by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: staytrue
All it means is that a lot of income like cap gains and dividends were accelerated into 2012 to avoid a possible large tax increase that might have happened in 2013.

Yep. Me included. My CPA said there was a lot of that.

So, I got *creamed* on my 2012 taxes which I paid in April, along with the totally unrealistic 1st quarter estimated. My income this year, even under optimum conditions will not come near what it "appeared" to be in 2012.

My CPA said I should just pay my last 3 quarters based on what I am really earning and take my chances with the underpayment penalty.

29 posted on 05/19/2013 6:26:06 PM PDT by ChildOfThe60s (If you can remember the 60s.....you weren't really there)
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To: andyk

How do you run a trillion dollar deficit and make that claim?”

You use the same math method, accountant, calculator and computer program that enabled unemployment to shrink to 7.7%.

Considering that true unemployment is probably somewhere in at least the 20% range, I’m not sure we want to know the real national debt.


30 posted on 05/19/2013 6:27:37 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: SeekAndFind

When you print enough fiat currency and inject it into the system, you can “pay” for a lot. And it works.

That is until your currency collapses. Coming soon to a world near you.


31 posted on 05/19/2013 6:29:43 PM PDT by piytar (The predator-class is furious that their prey are shooting back.)
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To: SeekAndFind
The budget deficit has been shrinking more than expected

Not one word of a SURPLUS. Just that the DEFICIT is shrinking. A shrinking deficit is still a DEFICIT.

32 posted on 05/19/2013 6:33:08 PM PDT by mountn man (The Pleasure You Get From Life Is Equal To The Attitude You Put Into It)
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To: SeekAndFind

So is ABC telling us the sequester, which they want to blame on the Republicans, is working??

I’m so confused.


33 posted on 05/19/2013 6:37:14 PM PDT by keats5 (Not all of us are hypnotized.)
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To: mountn man

they still plan on selling 80-100 billion a month?!! - in Bonds!

Oh... Iguess we can pay down the Debt & Everything!! just spend more money!!


34 posted on 05/19/2013 6:39:34 PM PDT by mj1234
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To: SeekAndFind

OK! So Treasury is running the printing presses 24/7, and placing all the money into the left pocket.

When they need to pay their bills, Treasury moves some of the money into the right pocket, named Federal Reserve, to get it into the monetary system

Now the right pocket is full, and with strong April 15 cash receipts, they can move some money from the right pocket, back into the left pocket.

Wow! Ice cream and cupcakes for everyone! Time to celebrate.


35 posted on 05/19/2013 6:39:40 PM PDT by Noob1999 (Loose Lips, Sink Ships)
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To: mj1234

American money is created by debt, thus it is fiat currency.


36 posted on 05/19/2013 6:41:48 PM PDT by MHGinTN (Being deceived can be cured.)
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To: SeekAndFind

Pay down the national debt? LOL. We incur $4 billion in new debt every day.


37 posted on 05/19/2013 6:47:42 PM PDT by kabar
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To: staytrue

Much of the increased revenue comes from Fannie May and Freddie Mac paying back money it borrowed.


38 posted on 05/19/2013 6:49:25 PM PDT by kabar
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To: SeekAndFind

Remember: The Republicans are responsible for anything bad associated with the sequester, and Obama is responsible for anything good.


39 posted on 05/19/2013 7:14:07 PM PDT by Redmen4ever
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To: SeekAndFind
Is this satire?
40 posted on 05/19/2013 7:19:52 PM PDT by vigilante2 (Re-elect nobody)
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To: entropy12
That is like saying I am only drinking 5 beers/day instead of 6...so I am alcohol free!

Actually, it's more like saying this: I usually drink 6 beers a day. Next week I was planning to start drinking 8 beers a day, but my buddy told me I was an alcoholic, so I cut next week's drinking back to only 7 beers a day. Now I'm worried that I won't be able to handle the sobriety.
41 posted on 05/19/2013 7:28:09 PM PDT by fr_freak
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To: SampleMan

Hmmm.....
35,000,000,000/16,000,000,000,000 =

2.2 THOUSANDTHS!

That equals

Width of human hair in centimeters,
Tolerance of a piston vs cylinder in inches
Distance light travels in 2 microseconds in feet

......


42 posted on 05/19/2013 7:33:47 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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>> Thanks to government spending cuts

There are NO spending cuts.

A young adult at 15 measured 5’8”. At 16, 5’9”. At 17, 5’9”. At 18, 5’10”.

According to govt math, at what year did the young adult shrink?


43 posted on 05/19/2013 7:33:54 PM PDT by Gene Eric (The Palin Doctrine.)
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To: DoughtyOne

Given where their heads are, the gigantic pill has to be in the form of a suppository.


44 posted on 05/19/2013 7:39:57 PM PDT by curious12
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To: Hostage

http://market-ticker.org/akcs-www?post=220813

since September 28th 2012 (the last business day for which this was reported) there has been a net $762.6 billion of new debt added to the Federal balance sheet, not $488 billion.


45 posted on 05/19/2013 7:40:49 PM PDT by griswold3
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To: FlingWingFlyer

The key to understanding Obamaspeak is to understand that Obama is self-delusional.

Obama truly believes that reality can be created just by him saying so.

I call these statements Obamalies.

Hence, when Obama wants something to be true, all he has to do is say the words and reality will be created around them.

In this manner Obama is capable of protecting himself from REALITY that you and I recognize, but is unrecognizable to Obama.


46 posted on 05/19/2013 9:03:54 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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This is obama media reporting this...

I believe NONE of them and trust none either.

They LIE...obama LIES and they even believe their own lies..

VOTE...2014 AND CLEAN UP GOVERNMENT..WATCH THEM ALL RUN SCARED IN THE COMING YEAR...2014 should be interesting..

47 posted on 05/19/2013 9:33:52 PM PDT by haircutter (,,,)
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To: SeekAndFind

http://www.treasurydirect.gov/NP/debt/search?startMonth=01&startDay=01&startYear=2013&endMonth=04&endDay=30&endYear=2013

We have still borrowed roughly $450 billion in the first 4 months of this year, so on a net basis, we will have still borrowed over $400 billion per month...

ABC trying to make chicken salad out of chicken ^^^^.


48 posted on 05/20/2013 3:37:08 AM PDT by NOVACPA
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To: NOVACPA

Oops...$100 billion per month...


49 posted on 05/20/2013 3:37:50 AM PDT by NOVACPA
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To: SeekAndFind

             
             


50 posted on 05/20/2013 3:52:37 AM PDT by tomkat (solve for x: Baraq = islamite .. islam = enemy ... Baraq = x)
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