Posted on 09/06/2023 5:59:04 AM PDT by Red Badger
The federal deficit is expected to nearly double this year, from about $1 trillion last year to $2 trillion for the fiscal year ending Sept. 30
Why it matters: There's no precedent for deficits this large, as a share of the economy — outside war, deep recession or pandemic.
The WashPost's Jeff Stein reported Sunday on the stunning projected figure from the Committee for a Responsible Federal Budget. Between the lines: Such huge spending imbalances contribute to high interest rates for consumers — including mortgages — in the short run.
In the long run, it means interest costs will likely squeeze all other federal priorities. What's happening: Bigger interest payments + lower tax receipts, despite strong economic growth.
"A strong economy usually reduces the deficit. Not this time," Stein writes. Reality check: The annual deficit was even higher — $2.8 trillion — in 2021, amid record COVID spending, according to the Congressional Budget Office.
Go deeper: White House urges Congress to avoid shutdown with short-term funding bill
Unexpected by whom?
Unexpected by who? Everyone I know expected it from the Biden Trainwreckonomy.
“Hi kids, remember me, Sleepy Biden? I did a little thing called “The Crash”!
Gaslighting.
Unexpected and Strong Economy. Those words do not belong in this story.
Title says it’s “unexpected.” First line says it’s “expected.”
Who writes this gaslighting drivel?
“Unexpectedly”
I did that!
He did The Crash...
He did the Monster Crash!.................
Exactly how is this unexpected. Jeez, I’m willing to bet even moron Keynesian economists could have expected it.
“There’s no precedent for deficits this large, as a share of the economy — outside war, deep recession or pandemic.”
Well, besides every other failed state that decided it made more sense to print money, bribe the electorate with impossible obligations, and buy foreign products instead of build value domestically and spend public resources wisely.
Liberals......................
Exactly.
The bidEn bidEnEconomy died both unexpectedly and suddenly.
“A strong economy usually reduces the deficit. Not this time”
Phew. I didn’t think the economy was strong. So all they have to do is print even more money, and everything will be hunky-dory. Good news!
They are ‘inflating their way out of debt’.
Bond holders are soooooooooooo screwed..............
But don’t worry. Da ‘conomy is boomin’ and millions more illegal aliens are on their way! Ay carumba!
Gosh, how did that happen? It is almost as if throwing money at everything on the far left’s wish list doesn’t make the economy grow.
Clearly, that cannot be the case and it is somehow Trump’s fault.
Any first-year economics student could see this was going to happen as a result of sharply higher interest rates.
The cost to finance the Federal Deficit has risen dramatically, the debt limit deal Kevin McCarthy and the Republicans gave to Biden is only going to make this worse.
Stagflation is here and is going to get worse, inflation will continue to pick up the Federal Reserve continue to raise rates, the economy will suffer, and the Federal Deficit will continue to accelerate.
Saudi Arabia and Russia are going to stick it to us by cutting production, raise the price of oil, which will make gas prices go up, which is already happening, since we won’t drill for our own oil, the Saudis and Russians are not going to do much to help Biden after how he’s treated them.
Eventually, we will need a Paul Voelker at the Fed who once raised interest rates 500 basis points in one day.
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