Economic Madness!

Government Spending Shock: US Budget Deficit Soars In Worst Start To Year On Record

2024-12-20T23:09:00.005-06:00

While the Democrats and Republicans pull their last minute shenanigans with the Continuing Resolution, threatening the end of the world if we don't agree to more deficit spending, designed to completely wreck our country, we were treated with the news that the first quarter of the fiscal year for our corrupt government saw more of the out of control, runaway spending that is sure to lead us to absolute despotism, eventually...and they know that, but drag us there at every opportunity anyway.

It's almost as if they are working for a foreign government that is out to destroy us. Oh, ya, that's right, that's exactly who they are and what they're trying to do.

Reposted from MadTimesFinancial.com:

We thought last month’s US budget deficit was bad. Boy, were we wrong.

It is only fitting that the twilight days of the Biden admin would exhibit more of the same fakeness that defined not only all of the past four years, but certainly the fakeness of that Kamala Harris presidential campaign which had a billion dollars a month ago and ended up in failure, broke… and millions in debt. We are talking, of course, about the relentless debt-funded spree that somehow became synonymous with economic success in the US.

According to the latest Treasury data released today, in November – the second month of fiscal 2025 – the US spent a massive $584.2 billion, a 14% increase from the prior year, and a record for the month of November. For those who remember out outrage from a month ago, will also remember that the latest deficit number follows what was also a record government outlay for the month of October.

On a trailing 6 month moving average basis, to smooth out outliers months, the spending hit $586 billion, effectively at an all time high with just the record spending spree during covid pushing government spending higher.

The surge in spending was driven primarily by higher spending on health, defense and Social Security, but mostly a huge $50BN spike on Medicare outlays!

The long-term chart of government spending shows what we all know: DOGE or not DOGE, there is no stopping this train.

The surge in spending was far greater than the much more modest increase in tax revenues: in November, the US government collected $301.8 billion in taxes, up 9.8% from the $274.8 billion last November. As shown in the next chart, while spending continued to grow exponentially, tax receipts have flatlined, and the 6 month average in October was just $380 billion, the same as three years ago!

To be sure, there were some calendar effects in play. Recall that last month we said that October 2023’s tax receipts were unusually higher due to deferred tax receipts that were received that month from companies and individuals affected by disasters including wildfires in California. Taking that into account, the October budget deficit would have been 22% higher (and would offset the freak September surplus which we are convinced was staged to make the last month of fiscal 2024 look abnormally good for the Biden admin). And since some of this calendar effect also nets in November, to avoid the calendar shifts across months we combined the first two months of fiscal 2025.

It shows that in October and November, the US deficit exploded to a staggering $624.2 billion, and even though this included several calendar adjustments – which explains the freak September surplus which as we said was due to calendar effects – the November deficit of $367 billion was $14 billion more than consensus estimates of $353 billion. Worse, combining October and November we find that not only was the combined number of $624 billion some 64% higher than the corresponding period one year ago, but it was also the highest deficit on record for the first two-months of the year (and that includes the spending insanity during the covid crisis).

Putting the deficit in context, the budget deficit in October and November – the first two months of fiscal 2025 – are now officially the worst start a year for the US Treasury on record.

Taking a closer look at what has been the most terrifying trend in the US income statement for some time now, the Treasury’s debt-servicing costs rose once again in November. Gross interest costs totaled $87 billion, up $7 billion from $80 billion in the same month a year before.

And if the November print seems low by recent standards, just wait one month: the December gross interest payment will be an absolute shocker as that’s when the bulk of interest payments take place. For December, expect a number north of $150 billion in interest alone!

Motor City Madness: Ugly Economic Truths Finally Caught Up With Detroit

2013-08-09T04:56:00.000-05:00

MSNBC host Melissa Harris-Perry — the same TV commentator who said Americans need to stop raising kids as if they belong to individual families — had an extraordinary explanation for why the city of Detroit sought to declare bankruptcy: not enough government.

“This is what it looks like when government is small enough to drown in your bathtub, and it is not a pretty picture.” She says budget-cutting Republicans threaten to transform all of the United States into Detroit.

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While the cause of Detroit's economic implosion might seem obvious to those of us that live in what Rush Limbaugh refers to as "realville", you can count on radicals like Perry to find a way to deflect the blame and miraculously manage to somehow twist reality into a world where it is actually all the fault of Republicans.

This is what liberals do, deflecting blame is a critical tactic in their constant attacks on their enemies. So, Detroit is bankrupt and it is all the fault of the evil Republicans and their small government policies. They never let facts get in the way of their arguments. And it is never, ever their fault.

Americans Believe Public Workers Better Paid & More Secure (Bingo!)

2012-12-11T18:43:00.000-06:00

"That report found the average civilian federal government worker collected just under $84,000 a year in taxpayer money, about $32,000 more than the average private sector worker. That's a total federal worker package of about $236 billion a year."

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Welfare Spending Equates to $168 Per Day for Every Household in Poverty

2012-12-07T18:51:00.000-06:00

"According to the Republican side of the Senate Budget Committee, welfare spending per day per household in poverty is $168, which is higher than the $137 median income per day. When broken down per hour, welfare spending per hour per household in poverty is $30.60, which is higher than the $25.03 median income per hour."

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73% of New Jobs Created in Last 5 Months Are in Government

2012-12-07T17:05:00.000-06:00

"In the same five-month period since June, the number of people employed by government increased by 621,000 to 20,559,000. These 621,000 new government jobs created in the last five months equal 73.3 percent of the 847,000 new jobs created overall."

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Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates

2012-09-13T20:38:00.000-05:00

"The Fed said it will buy $40 billion of mortgage-backed securities per month in an attempt to foster a nascent recovery in the real estate market."

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Your future tax dollars at work.

House Panel Probing Stimulus Cash For MSNBC Ads

2012-08-31T18:43:00.000-05:00

"..one taxpayer watchdog who questioned not only the lack of jobs but why the commercials aired only on MSNBC, considered the most liberal of the major cable news outlets."

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For the same reason billions of taxpayer dollars were funneled to favored green companies. For the same reason certain GM dealerships were closed, and certain were not.

This is what Crony Capitalism looks like, at the taxpayer expense.

Gasoline Rising to Holiday High as Storm Surge Presses Obama

2012-08-29T21:45:00.000-05:00

"Hurricane Isaac and a deadly blast at Venezuela’s Amuay refinery pushed gasoline to an almost four- month high and threatened to revive a debate about energy costs in the run-up to the presidential election in November."

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Sure thing Bloomberg, whatever you say. While there may be some truth to this article, the undeniable fact is that fuel prices have doubled from an already high $1.97 a gallon when Obama took office. We have been well over $3.00 a gallon for almost two years running, and - as a side note, but perhaps even more significant - curiously not a peep about it from the pathetic lame-stream media. That will change once a Republican takes over, the daily whaling about it will begin.

It is Obama's destructive energy policies that is strangling Americans at the pump. From shutting down the Gulf Coast after the BP oil spill, to sending billions to Brazil to facilitate their offshore oil exploration, to delaying permits (and lying about it), to shutting down the Keystone Pipeline and imposing regulations so burdensome that coal mines across the country are shutting down in record numbers.

The Lunatic-in-Chief is literally at war with America's energy capability, leaving no stone unturned in his assault. Remember, under his plan "energy costs would necessarily skyrocket."

Had enough? November can't get here fast enough, the only question is just how deep will the hole be by the time this country's leadership is turned over to a real American. Obama is this nations biggest imposter and has fooled too many for too long at too great a cost to all of us.

Negative $4,019 - The Obama Years Have Been Brutal On Middle-Class Incomes

2012-08-26T20:18:00.000-05:00

"In January 2009, the month President Obama entered the Oval Office and shortly before he signed his stimulus spending bill, median household income was $54,983. By June 2012, it had tumbled to $50,964, adjusted for inflation. (See the chart nearby.) That's $4,019 in lost real income, a little less than a month's income every year."

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Obama Economic Plan Would Explode Debt to $25.4 Trillion

2012-08-04T16:15:00.000-05:00

"A new analysis of Mr. Obama’s budget reveals the president’s plan would add $10.6 trillion in debt accumulation over the next decade, bringing the U.S. federal debt to a jaw-dropping $25.4 trillion."

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While it's no surprise to anyone paying attention, it is maddening to listen to the continual lies put out by the administration and his surrogates telling us of supposed "deficit cuts" in future budget years.

“The President’s proposals… include a balanced deficit reduction plan that would reduce our deficits by $4 trillion over 10 years, said White House Press Secretary Jay Carney in June."

Let's break this down a bit. This is how liberals are so disingenuous in their nuanced comments. Sure $4 trillion over ten years sounds like a lot of money doesn't it? To the average American not paying close attention it will not be questioned, the sound bite will have the intended positive affect and you will hear these useful idiots parroting these outrageous claims is if somehow this is going to solve anything.

Okay, now the math: Disclaimer, I know nothing more about this comment than what is contained in this comment so I am making a couple assumptions.

Obama's annual budget deficit, and corresponding increase to the national debt since he took office has been in the neighborhood of $1.4 trillion each year. Now, let's take the above claim boasted by the White House as good news and break it into years, so $4 trillion over 10 years equals a $400 billion deficit reduction each year. Easy enough.

Now, let's subtract this phony $400 billion claim from his current annual deficits - assuming this is the bar the administration is starting with and you get down to an annual deficit of $1.0 trillion per year. Are we making progress? I don't think so.

And finally, let's now add this up over the next 10 years and we arrive at a total cumulative increase in the national debt of $10 trillion dollars, swelling our current national debt balance to over $25 trillion dollars.

Got all that? This heinous, lying, deceitful administration and their radical surrogates spit out propaganda like the claim above knowing that too many Americans just don't pay close enough attention to really put it into context to evaluate if it really is good news or not, so it is swallowed whole in the manner in which it is presented - AS GOOD NEWS!

This is diabolical propaganda as Carney, the hack that he is, stands there and boasts that Obama's plan will cut the deficit by $4 trillion of 10 years, fully knowing an additional trillion dollar annual deficit will still exist.

Someone please feel free to correct me if I am wrong. This radical-in-chief intends to grow our national debt to over $25 trillion over the next 10 years, BY DESIGN. Got it folks? These lunatics MUST BE STOPPED!

Weekly Claims Post Rebound; Jobs Market Still in Doldrums

2012-07-19T19:26:00.000-05:00

"The number of Americans filing new claims for unemployment benefits rebounded last week, pushing them back to levels consistent with modest job growth after a seasonal quirk caused a sharp drop the prior period."

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Is it just me or does that statement sound deceiving? The word "rebounded" sounds positive, "levels consistent with modest job growth" seems to attempt to paint a perfectly normal picture of what they are reporting.

Let me clarify. Unemployment claims INCREASED by 34,000 last week to 386,000. That is BAD news, contrary to the subtle manipulation of the writer of this article.

Man, they sure are clever little liberals. The unsuspecting reader is completely oblivious to their subtle manipulations. There are books written about this sort of pseudo-hypnosis. It works and they know it.

Dems Block Obama's Tax-Cut Bill

2012-07-11T19:39:00.000-05:00

"But Mr. Reid objected to the request, saying he didn't want to have the vote on the GOP's legislation.
'It's the help Paris Hilton legislation,' he said. 'It would give people like her a tax break for doing nothing — $46 billion of the American people's money to help Paris Hilton and others."

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Say what?! Since when is it the "American people's money?" This is but a glimpse inside the mind of a liberal. All of the money belongs to the government (when they say "the people's" that is what they are referring to), and you are allowed to keep only as much as they think is reasonable, based on their needs, their requirements of that money and their intended uses of that money. It means nothing to them that you worked hard and earned that money, it is merely on loan from the government until such time as they feel it necessary to take it from you and give it to someone else.

Remember Obama's own words - "at a certain point you've made enough money." They want to decide how much is enough, not you.

In Maryland, Higher Taxes Chase Out Rich: Study Shows

2012-07-10T21:21:00.000-05:00

"A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich."

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However, further down in the article it mentions that some argue there is little evidence to support this theory. Once again proving the complete and total insanity of liberalism. They cannot accept reality or facts that stand in the way of their rigid ideological beliefs.

What is so important about examples like this however, is they underscore how destructive liberal policies are, and that if applied at the national level, leave Americans that disapprove with nowhere to go. The beauty of a 50 state Republic is the diversity of conditions that each American has to pick and choose how they want to live. As Big Government reaches further and further into our lives, our options - and our liberty - become more and more limited.

Roll-Your-Own Cigarette Stores Going Up In Smoke

2012-07-07T18:24:00.000-05:00

"On Friday, President Barack Obama is expected to sign into law a federal highway bill with a section that redefines tobacco manufacturers to include any business with a roll-your-own cigarette machine and taxes those products at the same rate as packaged smokes."

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The Obama administration, pressured by Big Tobacco are about to put an entire industry out of business with the stroke of a pen. This is what Obama economics looks like, protect the big guy and punish the little guy.

Mediation Fails, Pushing Stockton Toward Bankruptcy

2012-06-27T20:37:00.000-05:00

Bankruptcy is the eventual natural consequence of liberal policies. What liberals refuse to admit, and seem to ignore in their policy decisions, is the God given free will of all human beings that has been endowed by our Creator. It is this free will that inevitably is the undoing of the utopia that they so desperately are trying to impose on us.

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Liberals impose their unrealistic and destructive policies, and a natural consequence is for people and companies to vote not only at the ballot box, but with their feet. People who are selfish and lazy, who want all the freebies and inflated salaries that a cushy government job provides, stay, and hardworking entrepreneurs that have to foot the bill, pay oppressively high taxes and make unnecessary sacrifices to support others - including illegals, choose to move.

California is dropping into the ocean economically. It has not yet felt the full and inevitable natural consequence of their actions. But it is coming, it is unavoidable.

MSNBC Falsely Reports That Jobless Claims Edge Lower

2012-06-21T18:12:00.000-05:00

"The Labor Department reported Thursday that new jobless claims dropped a seasonally-adjusted 2,000 to 387,000 from a upwardly revised 389,000 the prior week. Economists polled by Reuters had forecast claims falling to 380,000 last week."

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This qulaifies as both Economic Madness and Media Madness due to the deceptive nature of the above remark. MSNBC does its best to spin this as a positive.

Here's how. Suppose they reported this weeks estimate of new jobless claims of 387,000 compared to last weeks estimate of new jobless claims of 380,000, that would be a negative because of the increase of 7,000 when comparing apples to apples. The jobless numbers are heading the wrong way and MSNBC uses the revised estimate from last week - 389,000 to compare to this weeks original estimate, showing a superficial decrease.

Furthermore, if reported separately and accurately this is double trouble. First, this weeks estimate is 7,000 higher than last weeks estimate (387,000 compared to last weeks estimate of 380,000). Second last weeks revised total is 9,000 higher than originally estimated (389,000 compared to 380,000). It's just that simple, but the media spins to intentionally mislead the unsuspecting public.

Just as the revision to the previous week that was made last week was upward from the original estimate that was released two weeks ago. Are you following this? I hope so. The media are spin masters for the left, doing everything they can to trick us into believing that things are improving, when our own lying eyes tell those of us paying attention otherwise.

Homes Prices Drop 2% to Post-Crisis Lows: Case-Shiller

2012-05-29T19:13:00.000-05:00

"Home prices fell in the first quarter to new post-crisis lows, but prices were up in March from February for the first time in seven months. The increase is the latest evidence of a slow recovery taking shape in the troubled housing market."

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It's not over yet folks.

Senators to Unveil the ‘Ex-Patriot Act’ to Respond to Facebook’s Saverin’s Tax ‘Scheme’

2012-05-17T19:05:00.000-05:00

The tyrannical left is at it again, threatening to impose their will on Americans that choose to exercise their free will to vote with their feet.

Oppressive radical socialist tyrants like Chuck Schumer can't stand that any American has even one ounce of free will to act against the ridiculous policies they have in mind for all of us.

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This one act is but the tip of the iceberg for what the left would subject Americans to if we ultimately give them the power they so desperately want. They will tell all of us exactly what we can drive, how much we can make (remember Obama's "at a certain point you've made enough money comment"), what foods we can and can't eat, what we can or can't turn our thermostats in our own homes (well, eventually they would abolish individual home ownership) up to, what doctor we can or can't see, what medical procedures we do or don't qualify for (see Obamacare and Ezekiel Emanuel's "Complete Lives System" of healthcare management here), what we can say (hate crimes legislation), what we can believe (gay marriage), what our children are taught (US Department of Education), and what we can do to our own property (the EPA) just to name a few.

The left has constructed a mammoth power structure that is already controlling a great deal of American's every day lives. Like the wild pig analogy, the fence is almost built, most Americans don't even realize it because they still have a sense of freedom, they can still move in and out of the encroaching fence that is being built just below their casual vision.

But, one day, when that last line of fence is built, be it gun ownership, healthcare, property rights, etc, we will all wake up and it will be too late. there will be no escape and America as we know it will be no more. The radical communist/marxist/tyrannical left will be in complete control and they will start rounding up non compliant Americans for "re-education" or worse. They are already compiling the list - are you on it?

At that point the American experiment will be over, all of it, lock stock and barrel. You will have no choice, no free will, no right to complain or change any of the outrageous policies they have in store for all of us. You will be in a living hell of their creation.

That is but one reason those who disagree with these lunatics must fight every single day to promote and expand the cause of freedom. We must wake the millions of Americans up that simply are not paying attention, and educate those that have been indoctrinated into the false ideology of liberalism.

“We Are Preparing For Massive Civil War,” Says DHS Informant

2012-05-06T13:31:00.000-05:00

“What they [DHS] are expecting, and again, this is according to my sources, what they’re expecting is the un-sustainability of the American dollar,” Hagmann said. “And we know for a fact that we can no longer service our debt. There’s going to be a period of hyperinflation . . . the dollar will be worthless . . . The economic collapse will be so severe, people won’t be ready for this.”

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Michelle Obama's $500,000 Shopping Trip: Huge Taxpayer Bill for First Lady's Spanish Beach Getaway Revealed

2012-04-30T09:00:00.000-05:00

What is it? Are the Obama's just plain stupid? I don't think so. Are they so arrogant that they think they can so thoroughly abuse the privilege of the Presidency? Maybe. Or do they know something that we don't about this year's election?

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We know they have the media covering for them, so can get away with just about anything. We also know that millions of uninformed voters have absolutely no clue what is happening at any given moment. These same voters are the people the Obama's are counting on to turn out for his re-election.

It's a fairly simple calculation then, those of us paying attention won't be voting for him anyway, so who cares if the alternative media plasters the internet with this stuff 24/7? The Obama's don't, as is evident by the continued financial abuses of their actions. From the countless vacations to Obama's endless campaign trips, all at our expense.

We have never in American history witnessed such an abuse of power as the uninformed electorate has delivered to us this last 4 years. I think the Obama's know it, don't care, and plan to rally these same useful idiots come November to assure they get 4 more years.

I hope I am wrong.

Capitalism at Work: Facebook IPO Could Create 1,000 Millionaires

2012-02-02T21:44:00.005-06:00

Yes, it's called Capitalism! Somebody remind Obama and his radical, Socialist/Communist, wealth-redistributing, class-warfare, hate-the-rich, Capitalism-is-inherently-racist-sexist-evil comrades.

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US New Home Sales Fell in December, Finish Dismal 2011

2012-01-26T21:52:00.002-06:00

"Total sales last year were less than the 323,000 sold in 2010, making it the worst year on records dating back to 1963."

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That statistic is staggering. What was the US population in 1963? Do a little math to get an idea how incredibly anemic the real estate market is right now. Despite Obama's constant remarks that the economy is getting better, that the unemployment rate is dropping (artificially of course), that he has miraculously pulled America out of the deep ditch that his predecessor drove it into. And on and on.

Nothing but lies, distortions and propaganda designed to keep us fooled just long enough to turn the keys back over to the Republicans next year so they can then begin banging away at them for how terrible everything is now that the Democrats are no longer in power.

Jobless Claims, Inflation Rise, Manufacturing Gets Weaker

2011-09-16T11:11:00.044-05:00

Why do the supposed experts keep saying "unexpectedly?" Story after story since January of 2009 is that everything is getting better. When news comes out that is inconsistent with their narrative, they call it unexpected. Subtle yet effective framing of the issue to soften the reality of the truth. However, that narrative will change right around January 21st, 2013, assuming a Republican is sworn into office on that day.

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The radical, liberal media can be expected to begin shifting their opinions - err, I mean stating the facts - soon after the November election. By the time a Republican President is sworn in we should be hearing all the usual rhetoric that was so prevalent during the Bush years.

Suddenly the expectations won't be so rosy. The truth about the economy and how bankrupt this country is will become a steady drumbeat. The liberal media will pounce on it and use it every day to erode public confidence and opinion of the new administration, and anyone or thing that resembles their opponents. They will begin their relentless assault on the new President and continue as long as a single Republican holds any shred of power.

This is something that Americans must accept and not be deterred by. The Media is lying and they know it. Their entire existence is to help the radicals attain and maintain power, and with that, a death grip on our way of life. Americans must press forward and into every avenue of their destruction and begin the long and challenging task of moving those critical issues back towards the right.

This perpetual, methodical, drifting to the left has to be stopped. But it will only come with shrillness and violent rhetoric from the left, and even the possibility of actual violence - we've seen what they are capable of. There is endless video evidence of their anger and violence, none of it covered by the radical leftist media of course. But it is there and it cannot intimidate or deter those who wish to be part of the solution, part of the generation of Americans that has woken up from their decades long slumber and begun the slow march back toward sanity - with the entire liberal establishment yelling, kicking, and screaming the whole way.

As I have said before, if the liberals are not yelling, kicking and screaming, you are not doing it right.

Comprehensive List of Obama Tax Hikes

2011-09-09T10:39:00.002-05:00

Obama has wasted no time extracting tax revenue from any and all possible sources since nearly his first day in office. He has to be without a doubt the most big-government, tax friendly, wealth-redistributing President we have ever been forced to endure.

Click here for article and list of Obama tax hikes

Again with his so-called "jobs" speech last night, he is proving to America that he is exactly what many of us knew him to be. He is not capable of real compromise, of making real steps to improve the free-market economy that built America into what it is today. It is not in his DNA. He is a radical, far-left, socialist, anti-capitalist at heart.

He is the radical-in-chief, and will be until January 2013, like it or not.

Obama's DOJ Raid on Gibson Continues Policy of Harassment of Private Industry

2011-09-03T08:05:00.000-05:00

Boeing, Standard and Poors, what next? Obama continues his assault on Capitalism and America's private industry.

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