Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

2019 Federal Budget Deficit Already Above 2018 Number

  by    0   0

The federal government continues to spend America into a black hole and has already topped last year’s budget deficit with two months left in the fiscal year.

The US budget deficit in July came in at $120 billion thanks to a surge in spending, according to data released by the Treasury Department.

Uncle Sam spent $371 billion in July. That was 23% more than the government spent in July 2018. The Treasury brought in $251 billion. That number was up 12% compared to July 2018.

The total budget deficit for fiscal 2019 now stands at $867 billion. That compares to a $684 billion deficit through the same period in fiscal 2018. With two months remaining in the fiscal year, the federal government has already topped the 2018 deficit, which was the largest in six years.

And there is no end in sight to the spending. Earlier this month, Pres. Trump signed a bipartisan budget deal that will increase discretionary spending from $1.32 trillion in the current fiscal year to $1.37 trillion in fiscal 2020 and then raises it again to $1.375 trillion the year after that. The deal will allow for an increase in both domestic and military spending.

Outlays for the military and healthcare were both up significantly in July. The federal government forked out $56 billion on the military last month. That was up $7 billion from the July 2018 figure. Medicare spending rose to $56 billion from $24 billion in July 2018. Uncle Sam spent $35 billion just paying interest on the current national debt last month.

To date, the federal government has spent over $3.7 trillion.

As Peter Schiff put it in a tweet, we’re seeing the most incredible growth in peacetime government spending ever.

All of this government spending, combined with consumer spending financed by credit cards, is helping prop up the US economy. Government spending was up 5% according to the Q2 GDP figures and added 0.85% to the overall GDP. Non-defense spending was up a whopping 15.9% in Q2. In a recent podcast, Peter Schiff said the last time government spending grew that much in a single quarter was 21 years ago. As Peter pointed out, we had two recessions in that timespan – including the Great Recession.

Non-defense spending – domestic spending – rose last quarter by more than it did in any quarter during either of those recessions. Think about that. Trump keeps complaining that we’re not getting as much monetary stimulus as Obama got. But look at all the fiscal stimulus we’re getting that Obama didn’t get.”

Generally, you see this kind of spending when the economy is weak.

Yet the fiscal stimulus that we’re getting now is larger than what we’ve gotten in the prior two recessions. Yet we’re getting this stimulus when the economy isn’t even in recession. I mean, if the economy is so good, why does it need so much fiscal stimulus? And if it’s getting so much fiscal stimulus, and if you believe fiscal stimulus works, why isn’t GDP even stronger?”

And what is going to happen when the country goes into a recession? If we’re seeing these massive budget deficits now, what will it look like when the economy tanks?

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Central Banks Add Nearly 23 Tons of Gold to Reserves

After two months of net global declines in gold holdings, central banks became net buyers again in October. Gold-buying by central banks has slowed from the record pace we saw in 2018 and 2019, but many countries continue to load up on the yellow metal. In October, central banks added a net 22.8 tons of […]

READ MORE →

Money Supply (Inflation) Continues to Grow at Torrid Pace

The money supply continues to grow at a torrid rate. Based on the “true” or Rothbard-Salerno money supply measure (TMS), the money supply grew by 37.08% year-on-year in October. That was down just slightly from September’s record rate of 37.54%.

READ MORE →

Fed Would Need to Double Quantitative Easing to Keep Pace With US Debt

The US government is increasingly relying on the Federal Reserve to prop up the Treasury market and absorb the trillions of dollars in bonds it’s issuing in order to fund its massive budget deficits. The Fed now holds a record 16.5% of US debt. And it’s going to have to buy trillions of dollars of […]

READ MORE →

17 Million Americans Behind on Mortgage or Rent Payments

Even as market mania continues over hopes for a coronavirus vaccine, the economic devastation caused by the government response to the pandemic continues to ravage the economy.  Seventeen million households are behind on rent or mortgage payments, and nearly 6 million Americans say they are at risk of eviction in the next few months.

READ MORE →

Foreign Share of US Debt Plunging; Fed Picking Up the Slack

Over the last year, the US government had borrowed over $4.2 trillion. The national debt now stands well above $27 trillion. There is no end in sight to the borrowing and spending and that raises a significant question: who is going to buy all of the bonds necessary to finance the government spending machine? Not […]

READ MORE →

Comments are closed.

Call Now