US Government brings in $20 billion surplus in June

[HeroOfPellinor]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5659963

Like I've been saying for months, the AMT is hitting these evil rich corporations and individuals who got the Bush tax cut, so you chicken littles can cut back on your ulcer medication.

On the spending side, defense expenditures rose almost 20 percent in June compared to the year-ago month, Medicare spending jumped 37 percent, and Social Security outflows rose a more modest 2 percent.

Spending is still up, which isn't good.

Earlier this year, the White House had forecast a $521 billion annual budget gap. A much lower revised forecast is expected to be issued sometime after mid-July.

That sounds like good news.

 

[Czar]

more spending and that surplus is because of unexpected tax income?
what the republicans stand for?

and the surplus is $19b 😛

 

[Hugenstein]

Way to ignore reality and just pick out the points that support your opinion.

In the Treasury Department's monthly budget statement, June income outpaced spending by $19.14 billion, slightly less than the government's June 2003 surplus of $21.23 billion.

The economy is so great that it is less than the surplus of last year? 😕

The U.S. remains on track for a second straight record annual budget deficit, on the heels of a $374.23 billion shortfall in 2003.

And the Deficit is still getting worse... 😕

For the first nine months of the fiscal year, which began Oct. 1, the U.S. has an accumulated federal deficit of $326.62 billion, well ahead of its $269.71 billion shortfall at the same point last year.

A lot worse... :Q

June's result is only the second monthly surplus this budget year, compared to four monthly overflows in the first nine months of fiscal 2003, according to Treasury data.

That's not good either, I thought the economy was so much better this year. 😕

 

[conjur]

Tax cuts are good for the economy!

Just look at that deficit drop!!






Oh wait....

 

[HeroOfPellinor]

Originally posted by: conjur
Tax cuts are good for the economy!

Just look at that deficit drop!!






Oh wait....

In the face of this unreal spending...I'd say the tax cuts have shown their merit a thousand times over.

 

[Hayabusa Rider]

Originally posted by: HeroOfPellinor

Originally posted by: conjur
Tax cuts are good for the economy!

Just look at that deficit drop!!






Oh wait....

In the face of this unreal spending...I'd say the tax cuts have shown their merit a thousand times over.

A large part of this spending is what you wanted. Hard to invade and occupy a nation half way around the world even when it was no real threat to us. That hasn't benefited any of us here, unless you count getting off on war, which seems to be common enough around here. Porn is cheaper. though.

 

[irwincur]

I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

 

[Hayabusa Rider]

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

Actually the deficit is really a debt that the future owes for services provided now.

 

[Hugenstein]

This is how much money the government is paying in interest on the debt

2003 $318,148,529,151.51
2002 $332,536,958,599.42
2001 $359,507,635,242.41
2000 $361,997,734,302.36
1999 $353,511,471,722.87
1998 $363,823,722,920.26
1997 $355,795,834,214.66
1996 $343,955,076,695.15
1995 $332,413,555,030.62
1994 $296,277,764,246.26
1993 $292,502,219,484.25
1992 $292,361,073,070.74
1991 $286,021,921,181.04
1990 $264,852,544,615.90
1989 $240,863,231,535.71
1988 $214,145,028,847.73

 

[conjur]

Originally posted by: WinstonSmith

Originally posted by: HeroOfPellinor

Originally posted by: conjur
Tax cuts are good for the economy!

Just look at that deficit drop!!






Oh wait....

In the face of this unreal spending...I'd say the tax cuts have shown their merit a thousand times over.

A large part of this spending is what you wanted. Hard to invade and occupy a nation half way around the world even when it was no real threat to us. That hasn't benefited any of us here, unless you count getting off on war, which seems to be common enough around here. Porn is cheaper. though.

And, the war spending was NOT part of the budget. It's all been supplemental authorizations!

 

[shazbot]

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

I was at a conference last week, and the former dean from the MIT school of management gave a speech. Really good stuff. Anyways, he only had one thing to say about deficits. Its basically just common sense. Deficits are mathematically impossible to sustain. The US has a $500b trade deficit spread out pretty evenly among the rest of the world. $100 to china, $100 to japan, 100 to EU, etc. And this trade deficit cannot continue indefinately. When the trade deficit from the US goes away, its going to create a shockwave to the rest of the world, since all their trade surplus is going to disappear. He then went onto how to create financial architectures to deal with such crisis.

 

[Kipper]

Originally posted by: Hugenstein
This is how much money the government is paying in interest on the debt

2003 $318,148,529,151.51
2002 $332,536,958,599.42
2001 $359,507,635,242.41
2000 $361,997,734,302.36
1999 $353,511,471,722.87
1998 $363,823,722,920.26
1997 $355,795,834,214.66
1996 $343,955,076,695.15
1995 $332,413,555,030.62
1994 $296,277,764,246.26
1993 $292,502,219,484.25
1992 $292,361,073,070.74
1991 $286,021,921,181.04
1990 $264,852,544,615.90
1989 $240,863,231,535.71
1988 $214,145,028,847.73

That doesn't even take into account the amount we've siphoned away from other Federal programs, building up deficits there as well.

 

[lozina]

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

It's not bad because Bush is currently at the helm. Come this November when Kerry takes the helm you'll be flailing your arms wildly complaining about the deficit.

 

[chowderhead]

Originally posted by: lozina

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

It's not bad because Bush is currently at the helm. Come this November when Kerry takes the helm you'll be flailing your arms wildly complaining about the deficit.

I am be so happy when Kerry takes over in Jan. Then the Republicans can go back to pretending to being fiscally conservative and serve as a check on Kerry's spending. Right now, we have a Republican Congress and a Republican president. GWB has left no spending bill unsigned.

 

[DealMonkey]

Originally posted by: Czar
more spending and that surplus is because of unexpected tax income?
what the republicans stand for?

and the surplus is $19b 😛

$19Bil? Heh, that'll barely take care of Iraq for a few months...

 

[conjur]

Originally posted by: Hugenstein
This is how much money the government is paying in interest on the debt

2003 $318,148,529,151.51
2002 $332,536,958,599.42
2001 $359,507,635,242.41
2000 $361,997,734,302.36
1999 $353,511,471,722.87
1998 $363,823,722,920.26
1997 $355,795,834,214.66
1996 $343,955,076,695.15
1995 $332,413,555,030.62
1994 $296,277,764,246.26
1993 $292,502,219,484.25
1992 $292,361,073,070.74
1991 $286,021,921,181.04
1990 $264,852,544,615.90
1989 $240,863,231,535.71
1988 $214,145,028,847.73

Public Debt To The Penny
as of 7|13|04

$7,268,273,275,149.20

Increase in Federal Debt
since end of FY 2003 (9|30|03):

$485,042,212,405.58

source: Bureau of Public Debt

 

[piasabird]

If the Deficeit went away the government would just have more money to make big ticket purchases.

 

[GrGr]

Originally posted by: chowderhead

Originally posted by: lozina

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

It's not bad because Bush is currently at the helm. Come this November when Kerry takes the helm you'll be flailing your arms wildly complaining about the deficit.

I am be so happy when Kerry takes over in Jan. Then the Republicans can go back to pretending to being fiscally conservative and serve as a check on Kerry's spending. Right now, we have a Republican Congress and a Republican president. GWB has left no spending bill unsigned.

Under Bush, Federal Spending Increases at Fastest Rate in 30 Years

 

[ReiAyanami]

take any basic economics class and realize during boom times tax cuts should be repealed and taxes raised, while during recession they should be lowered. if the economy is really stellar as bush claims it is (4.5% GDP growth) then he should be raising taxes to counter the budget deficit.

he got 1/2 right.
mission accomplished

 

[GrGr]

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

....
Akerlof: As of March 2003, the CBO estimated that the surplus for the next decade would approximately reach one trillion dollars. But this projection assumes, among other questionable things, that spending until 2013 is going to be constant in real dollar terms. That has never been the case. And with the current tax cuts, a realistic estimate would be a deficit in excess of six trillion.
....

Akerlof: Future generations and even people in ten years are going to face massive public deficits and huge government debt. Then we have a choice. We can be like a very poor country with problems of threatening bankruptcy. Or we're going to have to cut back seriously on Medicare and Social Security. So the money that is going overwhelmingly to the wealthy is going to be paid by cutting services for the elderly. And people depend on those. It's only among the richest 40 percent that you begin to get households who have sizeable fractions of their own retirement income.

A six trillion deficit isn't exactly chickenshit. This "recovery" is "the best money can buy". Bush has spent a fortune of the funds of the future to get the economy going. It would be an utter disaster if he had absolutely nothing to show for it. But the underlying problem of the deficit remains and will have to be dealt with.

 

[conjur]

Uhh...it's not $6 trillion.





It's $7,270,457,261,677.80

😉

 

[halik]

Originally posted by: WinstonSmith

Originally posted by: irwincur
I would like to see evidence from a real economist that explains why deficits are bad. Most regard them as non issues. Actually they are considered to be cheap debt compared to othe forms of debt that people can hold. After all, the deficit is really a debt that we all owe to the government for future services.

Actually the deficit is really a debt that the future owes for services provided now.

 

[Stunt]

The interest rates are at historic lows.
Inflation is rising.
The only way government can counter this...is raising rates.
Watch the interest payments go through the roof!!

According to my calculations:
Debt to the penny
in 2000: debt at $5,674,178,209,886.86, and interest at $361,997,734,302.36
interest rate: 6.4%

in 2003: debt at $6,783,231,062,743.62, and interest at $318,148,529,151.51
interest rate: 4.7%

so...if we see interest rates at 2000 levels...only 4 years ago...not hard to fathom (very likely imo...with wholsale inflation rates jumping as they are) and the debt is 7.26 trillion (and not going anywhere soon)

we see your interest on the debt (doesnt go to tax cuts or social programs...just lost money) at 465,169,489,609.53

so you are definately lucky rates are as low as they are...or you can add another $150 billion of lost money to your deficit bill!

Something to think about if you are a fiscal conservative...bush is not fiscal. Tax cuts can help the economy...but not reckless tax cuts...increased gov't spending, more military spending and wars.

No matter where you fit in with respect to war, no war...tax cuts or no tax cuts...i think we can aggree that these numbers are horrible and are not bettering anyone.

 

[Stunt]

interesting link...US deficits and debt

Whoever said tax cuts have worked time and time again...will surely explin which period this was...maybe the clinton years where there were the only surpluses in history of the United States...

 

[GrGr]

Originally posted by: conjur
Uhh...it's not $6 trillion.





It's $7,270,457,261,677.80

😉

The debt and the deficit are related but not the same thing. I think the six million+ deficit Akerlof is talking about is the amount of money needed simply to make ends meet for the government in the future. Think about what that will do to the national debt! (And what will happen to those people who have bought government bonds and who then go to exhange them and the government simply prints a few trillion dollars 🙂)


4.2) How do you make a contribution to reduce the debt?

Please follow these important steps to make a contribution to reduce the debt.

1. Make check payable to the "Bureau of the Public Debt"
2. In the memo section of the check, make sure you write "Gift to reduce the Debt Held by the Public "
3. Mail check to -

ATTN DEPT G
BUREAU OF THE PUBLIC DEBT
P O BOX 2188
PARKERSBURG, WV 26106-2188

😉

Or you could buy a quality pumpaction shotgun and a small mountain of ammo 😛