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 ...
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...
Great post!
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
