Contact us
CALL US NOW 1-888-GOLD-160

Federal Spending Pandemic Continues Unabated

  by    0   0

Even with the federal government ostensibly trying to limit spending with its head against the debt ceiling, it managed to run another massive deficit in November.

The budget shortfall last month was $191.34 billion, according to the latest Treasury Department statement. That was 31.7% higher than the November 2021 deficit.

This comes on the heels of the second-largest annual budget deficit in history. Uncle Sam spent $2.77 trillion more than he took in during fiscal 2021.

Of course, the spending isn’t slowing down.

The Biden administration blew through another $473 billion in November. That brings total federal spending to just shy of $1 trillion ($922 billion) in just the first two months of fiscal 2022.

Spending so far in fiscal 2022 is about 4% higher than it was through the same period in fiscal 2021.

The only thing keeping the deficit from ballooning even faster is a sharp increase in revenue collection with the economy recovering somewhat from the pandemic. Uncle Sam collected $281.2 billion last month. Total government receipts through the first 2 months of fiscal 2022 are 23.6% higher than the same period in fiscal 2021.

Simply put, an easing in coronavirus has done nothing to ease the pandemic of federal spending.

As of Dec 9, the national debt remained just shy of $29 trillion ($28.91 trillion), locked at that level thanks to the debt ceiling. But that spending limit is about to be brushed away as Republicans have reached a deal to allow Democrats to raise the debt ceiling. When it does, the Treasury Department will have to go on another massive borrowing binge to cover this and future deficits.

The US government added $480 billion to the debt in October after Congress passed a bill increasing the federal debt ceiling by that amount.

And there is no end in sight to the spending. Congress has already passed a massive infrastructure bill and it continues to haggle over the “Build Back Better” bill.  Supporters of these big spending plans promise tax increases and government savings will “pay for” the spending. But it’s almost certain tax receipts will fall short of projections and spending will be even higher than budgeted. That’s hove government always works.

According to the National Debt Clock, the debt to GDP ratio is 125.92%. Despite the lack of concern in the mainstream, debt has consequences. More government debt means less economic growth. Studies have shown that a debt to GDP ratio of over 90% retards economic growth by about 30%. This throws cold water on the conventional “spend now, worry about the debt later” mantra, along with the frequent claim that “we can grow ourselves out of the debt” now popular on both sides of the aisle in DC.

Every American citizen would have to write a check for $87,127 in order to pay off the national debt. That’s $142 more than last month.

Student Loan Bubble Free Report

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

Gold Mine Production Up Modestly in 2022 But Remains Below Pre-Pandemic Peak

Gold mine production was up modestly in 2022 as mining operations normalized post-pandemic. But mine output still hasn’t returned to the peak we saw in 2018, boosting speculation that we have possibly reached “peak gold.”


Why Have So Many People Dropped Out of the Labor Market?

Why is there a labor shortage in the US? In a nutshell, a lot of people have simply dropped out of the labor market. They’re not working. But why?


Gold Demand Hit 11-Year High in 2022

Gold demand grew by 18% to 4,741 tons in 2022, the highest demand in 11 years, according to data compiled by the World Gold Council. Massive central bank purchases coupled with strong retail investor buying and slowing outflows from ETFs drove overall demand higher.


Petrodollar on Shaky Ground; Saudi Arabia Willing to Discuss Selling Oil in Other Currencies

In a recent interview, Saudi Arabia Finance Minister Mohammed Al-Jadaan said the country is open to discussing trade in currencies other than the US dollar. This could mark the beginning of the end of petrodollar exclusivity. That would be a huge blow to dollar dominance.


Why Are Central Banks Buying Gold?

As we’ve reported central banks globally have been piling in gold. The question is why?


Comments are closed.

Call Now