Tax revenues have been on the rise for about 18 months. As speculated previously, if this windfall was temporary, it would have shown up with a deficit in April due to a higher than normal tax returns surge. April is historically a positive month for the Treasury, but a surge in tax returns leading to a deficit would have suggested the past year was potentially a fluke.
Despite talk about a war on inflation and a quantitative easing taper, the money supply continues to expand at a rapid clip, fanning the inflationary fire.
M2 increased by $249.2B in November.
The federal government continues to run big budget deficits as spending skyrockets. Increasing tax revenues are the only thing keeping the deficits from blowing up even further. But how long will this tax windfall last?
Here we go again.
The clock is ticking down to another US debt ceiling battle.
President Biden has proposed a borrow and spend “to infinity and beyond” budget featuring $6 trillion in government spending. That’s the largest amount of spending ever proposed in a presidential budget. It’s not accurate to call it a “budget.” The federal government has given up on actual budgeting.
President Joe Biden released his 2022 budget this week. The $6 trillion spending plan offers a glimpse into Biden’s long-term fiscal strategy – borrow and spend to infinity and beyond.
The Biden budget would take the US to its highest sustained spending levels since World War II.
And here you thought the pandemic emergency was winding down and spending would go back to normal. Well apparently, this is the new normal.
The net worth of the US comes in at negative $21.5 trillion.
This according to the Financial Report of the United States Government recently released by the Treasury Department.
At the current trajectory, the cost of paying the annual interest on the US debt will equal the annual cost of Social Security within 30 years, according to a recent report released by the Congressional Budget Office.
By 2048, as interest rates rise from their currently low levels and as debt accumulates, the federal government’s net interest costs are projected to more than double as a percentage of GDP and to reach record levels. Those costs would equal spending for Social Security, currently the largest federal program, by 2048.”
