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Tag Archives: government spending

(Un)Happy Deficit Day

On June 9, the national debt surged above $26 trillion. Just over one month before that, the debt eclipsed $25 trillion. And 28 days before that, the national debt stood at a mere $24 million. May’s budget shortfall came in at a staggering $398.8 billion, pushing the fiscal 2020 deficit to $1.88 trillionAnd there is no end to the borrowing and spending in sight. The following article originally published at puts the deficit in some disturbing historical context and explains why it...

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Dear Government: This Is Not Helpful

After the stock market tanked last week, the Trump administration tried to do damage control and talk the economy back up. In his podcast, Peter Schiff said the damage control fell flat. In fact, everything the government is doing claiming to help isn’t helping at all. After what seemed like weeks of optimism, the bottom fell out of the markets on Thursday. The Dow Jones had its worst day since March, plunging over 1800 points. Some of the pessimism stemmed from Federal...

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Peter Schiff: Socialism Is Looting With a Middleman

Protests have rocked the US in the wake of George Floyd’s death at the hands of a Minneapolis police officer. In some areas, peaceful protests have crossed the line into violence and looting. But the real question is what are the long-lasting political ramifications that will come out of the unrest?Peter Schiff talked about it during a recent podcast and worried that it could lead to bigger government and more socialism.The entire nation is going to end up grieving a far greater loss when...

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Fed Chair Powell’s Solution Is the Root of the Problem

Federal Reserve Chairman Jerome Powell went negative in a webcast speech on Wednesday, May 13.I’m not talking about negative interest rates, although that could be coming down the pike as well. Powell went negative on the prospects of a quick economic recovery.He’s right about the prospects for the economy, but he’s wrong about the solution. That’s because he doesn’t even realize it’s Fed policy at the root of the problem to begin with.A lot of pundits and politicians have assumed that the...

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Staggering April Budget Deficit Just the Tip of the Iceberg

The April federal budget deficit came in at a staggering $738 billion as government coronavirus stimulus began flowing through the pipelines and revenue dipped due to the government lockdowns.Analysts expected a massive deficit in April, but it’s still a staggering number. To put it into perspective, the previous record for a single month was $235 billion and that was just in February of this year.Including April’s shortfall, the budget deficit for fiscal 2020 stands just under $1.5...

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National Debt Climbs Above $25 Trillion

Twenty-eight days.That’s how long it took to add another $1 trillion to the national debt.On April 7, the debt pushed above $24 trillion. On Tuesday, May 5, it eclipsed $25 trillion.It’s impossible to grasp just how big these numbers are. Consider that the debt is growing at an average of about $1.2 million per minute. Every day, Uncle Sam goes another $1.7 billion in hock.According to the National Debt Clock, the debt to GDP ratio has risen to over 117%. Studies have shown that a debt to...

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The COVID Crisis in Comparison with the Great Depression

People have been asking how the Great Depression and the New Deal compare with the current COVID-19 crisis.  The economic situations are nothing alike, and the current response by U.S. governments is several orders of magnitude larger than the New Deal response to the Great Depression. Currently, we know exactly why the economy has fallen off a cliff.   To stop the expansion of a nasty disease that can lead to horrifying deaths, officials from all levels of government...

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Enjoy Your Future; We’re Spending It Now

Welcome to your future. Your government is spending it right now. And your children’s and grandchildren’s future to boot.The US Treasury plans to borrow $2.99 trillion in the second quarter. The Treasury also plans to borrow another $677 billion in the July-September quarter, bringing the total fiscal 2020 debt to $4.48 trillion.It’s a level of borrowing that’s difficult to even wrap your head around. To put it into some perspective, before the pandemic, the CBO projected that the federal...

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The Calm Before the Storm: $119 Billion Budget Deficit in March

The US government budget deficit in March came in at $119 billion, according to the latest US Treasury Department Report.That’s a massive budget shortfall. But it’s actually the calm before the storm.The March 2020 deficit came lower than the $146 billion shortfall in March 2020. But this was primarily a function of the calendar. Significant March outlays were pushed back into February. Overall, the budget deficit through the first half of fiscal 2020 stands at $744 billion, an 8% increase...

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US Government Kicks Off 2020 With Another Big Deficit

The US government posted another massive deficit to start out calendar-year 2020.According to the latest data released by the US Treasury Department, Uncle Sam spent $32.6 billion more than it took in last month. That compares with an $8.7 billion surplus in January 2019. Analysts had projected an $11.5 billion shortfall in January.That brings the total deficit in FY2020 to $389.2 billion. So far, the deficit in fiscal 2020 is about $79 billion bigger than it was at this point in...

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