Skip to comments.Deficit Surprise: US Pays Down National Debt
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 ...
Riiight. And at the same time Obama’s asking for another debt limit increase!
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.
So how does this work? The Treasury prints a bunch of money and pays themselves back?
Btw, what government spending cuts? They haven’t cut a dime.
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.
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
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.
“...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.
I'm sure there are armies of tax attorneys trying to figure out the best position to be in when ObamaCaraMageddon strikes in January.
It is “a cut from the increase.”
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.
That is like saying I am only drinking 5 beers/day instead of 6...so I am alcohol free!
Projected debt maybe??
I blame the Sequester.
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?
Wow! Now we can drop all of these “scandals” and words like “impeachment” because he’s saving us from the debt!/S
Don’t we officially run out of money this week?
This is total BS...
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’.
A feat of bookkeeping legerdermain.
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.
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.
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.
Not one word of a SURPLUS. Just that the DEFICIT is shrinking. A shrinking deficit is still a DEFICIT.
So is ABC telling us the sequester, which they want to blame on the Republicans, is working??
I’m so confused.
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!!
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.
American money is created by debt, thus it is fiat currency.
Pay down the national debt? LOL. We incur $4 billion in new debt every day.
Much of the increased revenue comes from Fannie May and Freddie Mac paying back money it borrowed.
Remember: The Republicans are responsible for anything bad associated with the sequester, and Obama is responsible for anything good.
Width of human hair in centimeters,
Tolerance of a piston vs cylinder in inches
Distance light travels in 2 microseconds in feet
>> 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?
Given where their heads are, the gigantic pill has to be in the form of a suppository.
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.
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.
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..
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 ^^^^.
Oops...$100 billion per month...