Posted on 12/20/2023 8:11:45 AM PST by Red Badger
The U.S. government ran a budget deficit of $381 billion so far into the 2024 fiscal year, which represents a 13% increase from this same time period last year.
The deficit is $44 billion higher than it was at the end of November 2022, according to the latest data released by the U.S. Department of the Treasury.
Congress passed a "laddered" continuing resolution in November with a final expiration date of February 2. Conservative House Republicans have been calling for a reduction in federal spending to reduce the budget deficit. Congress must pass another spending bill to keep the government funded past Feb. 2.
The specific cuts the House GOP is considering remains unclear at this time, but any reduction in spending is likely to hit roadblocks in the Democratic-led Senate. Senate Majority Leader Chuck Schumer, D-N.Y., has criticized previous GOP attempts to cut domestic spending levels.
In September, House Republicans were trying to cut annual spending by about $120 billion, which still would not balance the budget. Congressional Democratic leaders were critical of their approach at the time.
Senate congressional leaders are currently debating a foreign assistance package that would provide additional aid to Ukraine and Israel as well as humanitarian assistance for Palestinian refugees along with money for U.S. border security. Senate leaders said on Tuesday that both sides were closer to a deal, but a formal agreement hasn't been reached yet.
"With regard to the border discussion, I think it's pretty safe to say that we've made some significant progress, but we obviously aren't there," McConnell said at the Capitol during his weekly news conference on Tuesday.
On the House side, Republicans have argued that additional aid for Israel and Ukraine should be paid for or "offset" by equivalent spending reductions. Schumer has said that such foreign assistance does not need to be paid for since it is considered emergency spending.
Senators are still in Washington negotiating on the package but the House has left town for the holidays.
Scott Hodge, president emeritus and senior policy adviser at the Tax Foundation, a nonpartisan tax policy 501(c)(3) nonprofit, said the U.S. Treasury reporting a 13% increase in the deficit compared to November 2022 shows the U.S. government continues to go down the wrong path when it comes to fiscal policy.
"It is being driven by federal spending, which is up by $152 billion, a 17% increase compared to the same month in 2022. The monthly deficit would have been worse if decent economic growth hadn’t boosted federal tax collections by $108 billion, or 19%," Hodge told Just the News.
"The problem with the federal budget is basic math—the growth in spending continues to outpace the growth in tax collections. This is why our national debit is heading toward $34 trillion. It cannot go on forever without serious economic consequences," he added.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, shared a similar perspective on the matter. "The longer we allow our debt to worsen, the less room we ultimately have to respond to the kinds of global emergencies we’re seeing in the world today," she said.
"This leaves policymakers with a choice: make the hard choices today by paying for our priorities and putting the national debt on a sustainable trajectory, or saddle the next generation with an even worse situation," she added.
The national debt in January of 2020 was $17.2 trillion, according to historical data from the Peterson Foundation. By contrast, the national debt is currently $33.9 trillion, according to the U.S. Treasury.
Where is our fearless SOH?
Doesn’t matter. They’ll just increase the money supply so that the national debt isn’t as bad on paper. You’ll pay for it with hyper-inflation, but that’s not their problem.
Both parties will blame each other when it hits $34 trillion.
Then they will go back to spending more until it hits $35 trillion.
Rinse and repeat.
A billion here. A billion there. Pretty soon we will be talking about big numbers! //sarc
At some point the other nations will stop taking US dollars as payment for goods and services.
They will demand gold or some other more stable currency.
Then we will be forced to stop buying foreign goods.....................
A-hole politicians destroying the country. Will not build a wall but want to send money to Ukraine and Israel. Meanwhile crime is up and it’s free rein for the criminal shoplifters without any consequence.
“You’ll pay for it with hyper-inflation, but that’s not their problem.”
**********
Exactly right. Its never a problem for the elites. Just the little people.
Crime is rampant, but Capitol Hill is safe and secure.
William Devane is going to have to change the figures on the “National deficit meter” he has running in the background in his ads for Rosland Capital, a gold broker. Still the deficit is going up by millions per minute.
Where’s the “this is fine” cartoon?
That’s the one, thanks.
Notice the countries joining with the US in Operation Prosperity Guardian over the Houthis and shipping lanes don’t include any of the BRICS countries.
How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually, then suddenly.”
“The Sun also Rises”
Ernest Hemingway
It appears, as of now, the interest on the debt is consuming 16% of the Federal tax income. So, from the way I see it, if the Federal Reserve keeps the interest rates up, the the payments on the debt will continue to rise. This will reduce discretionary spending or cause more borrowing, probably the later. If the Federal Reserve reduces interest rates then inflation will rise as will borrowing both private and government. If Congress cuts spending and raises tax that would probably trigger a recession or even a depression which would reduce tax income. So it seems our economy is entering a death spiral and there will be no soft landing.
There is no will in Washington to cut spending.
There is no will in Washington to stop borrowing.
It’s like a drug addict and his fix.
It’s all there is in his world..................
I think the State of Arkansas needs to ban Joe Biden on the 2024 National Ballot for high crimes and misdameanors. Convicted? Doesn’t matter these days. A judge can just feel he is guilty.
Wish we would see something like that from the red states to make the point.
Washington accumulates power by spending.
Washington creates need by exacerbating problems that create an impetus for a government solution.
Hand in glove.
And the only ones that gain are involved in the government. Masters and peasants. The only way this game ends is to eliminate the government.
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