U.S. Deficit to Surpass $1 Trillion Two Years Ahead of Estimates

[ABX]

The U.S. budget deficit will surpass $1 trillion by 2020, two years sooner than previously estimated, as tax cuts and spending increases signed by President Donald Trump do little to boost long-term economic growth, according to the Congressional Budget Office.


Spending will exceed revenue by $804 billion in the fiscal year through September, jumping from a projected $563 billion shortfall forecast in June, the non-partisan arm of Congress said in a report Monday. In fiscal 2019, the deficit will reach $981 billion, compared with an earlier projection of $689 billion.....

https://www.bloomberg.com/news/articles/2018-04-09/u-s-budget-deficit-to-balloon-to-1-trillion-by-2020-cbo-says

[DB]

Vote Republican, they'll turn the tide on deficit spending!

Well...

Maybe not... At least not anymore...

I refuse to be a member of the DC Uniparty. I've been lied to long enough. It only makes me the fool to believe them anymore.

[roamer_1]

I refuse to be a member of the DC Uniparty. I've been lied to long enough. It only makes me the fool to believe them anymore.

Megadittos. *SPIT*

[Free Vulcan]

This isn't an academic exercise, or 'something we'll pass on to our grandchildren'. Assuming no recession, we're on track to hit $30T debt with $5T in revenues in a bit under 10 years.

Average borrowing rates at a mere 4% will mean $1.2T interest per year or about 25% of projected tax receipts. That doesn't factor in Social Security as far as I know.

Imagine SS, Welfare, the military, and all other programs getting cut 25%. The cities would burn, and our nation could barely defend itself, much less project force across the pond.

Pray that we don't get a recession. Tax receipts dropped 20% the last one, and we ran the equivalent of $2T deficits.

We are painting ourselves into an interest rate corner. That will be the 'wakey, wakey, eggs and bakey' moment.

[DB]

This isn't an academic exercise, or 'something we'll pass on to our grandchildren'. Assuming no recession, we're on track to hit $30T debt with $5T in revenues in a bit under 10 years.

Average borrowing rates at a mere 4% will mean $1.2T interest per year or about 25% of projected tax receipts. That doesn't factor in Social Security as far as I know.

Imagine SS, Welfare, the military, and all other programs getting cut 25%. The cities would burn, and our nation could barely defend itself, much less project force across the pond.

Pray that we don't get a recession. Tax receipts dropped 20% the last one, and we ran the equivalent of $2T deficits.

We are painting ourselves into an interest rate corner. That will be the 'wakey, wakey, eggs and bakey' moment.

We've already done that. They've spent our future and show no signs of slowing down. The next stop is financial chaos. The only question is when.

[Applewood]

Vote Republican, they'll turn the tide on deficit spending!

Well...

Maybe not... At least not anymore...

I refuse to be a member of the DC Uniparty. I've been lied to long enough. It only makes me the fool to believe them anymore.

Yeah, we've been told we had to vote Republican to save us from the Democrats. 

I'm still waiting for someone to explain the differences between the two parties. 

[DB]

Yeah, we've been told we had to vote Republican to save us from the Democrats. 

I'm still waiting for someone to explain the differences between the two parties.

Well one difference comes to mind...

Democrats tell you they want to tax you more and spend more. At least they're truthful about that.

Republicans tell you the opposite and then tax and spend more... And if they do tax less, it is only at the bottom end making taxes even more progressive while spending more.

[Concerned]

Even with a forecast of 3.3% GDP growth, this is what you get with massive tax cuts and spending increases.  Republicans have decided that deficit spending.......it's not just for Democrats any more.   

[LMAO]

Not to excuse them, and those  we elect to office deserve lots of blame, but plenty of blame needs to go to the electorate as well.

What do you think would happen to the politician who proposes real, meaningful spending cuts?Especially with big budget items.  Even many who call themselves conservative bristle at the notion of cutting “their” entitlement spending

 I don’t think we will see any cuts until we have an  authoritarian type of government

[roamer_1]

Not to excuse them, and those  we elect to office deserve lots of blame, but plenty of blame needs to go to the electorate as well.

What do you think would happen to the politician who proposes real, meaningful spending cuts?Especially with big budget items.  Even many who call themselves conservative bristle at the notion of cutting “their” entitlement spending

 I don’t think we will see any cuts until we have an  authoritarian type of government

Oh, I dunno... Cruz backed down King Corn right in their own back yard...

[LMAO]

Oh, I dunno... Cruz backed down King Corn right in their own back yard...

King Corn is not even a drop in the bucket compared to Social Security and Medicare

[TomSea]

Oh, I dunno... Cruz backed down King Corn right in their own back yard...

And oil subsidies? Believe me, those exist. How much are those in comparison?  And yes, Cruz has spoken out against those. "...backed down King Corn right in their own back yard...", I can't even tell what that means.

http://www.thegazette.com/subject/news/government/fact-check/factchecker-does-ted-cruz-want-to-eliminate-all-subsidies-or-just-those-for-ethanol-20151218

[TomSea]

Cruz backed down Big Oil in their own back yard. There, that makes sense.

[Sanguine]

This isn't an academic exercise, or 'something we'll pass on to our grandchildren'. Assuming no recession, we're on track to hit $30T debt with $5T in revenues in a bit under 10 years.

Average borrowing rates at a mere 4% will mean $1.2T interest per year or about 25% of projected tax receipts. That doesn't factor in Social Security as far as I know.

Imagine SS, Welfare, the military, and all other programs getting cut 25%. The cities would burn, and our nation could barely defend itself, much less project force across the pond.

Pray that we don't get a recession. Tax receipts dropped 20% the last one, and we ran the equivalent of $2T deficits.

We are painting ourselves into an interest rate corner. That will be the 'wakey, wakey, eggs and bakey' moment.

And, of course at some point, we will get a recession.

[Sanguine]

Not to excuse them, and those  we elect to office deserve lots of blame, but plenty of blame needs to go to the electorate as well.

What do you think would happen to the politician who proposes real, meaningful spending cuts?Especially with big budget items.  Even many who call themselves conservative bristle at the notion of cutting “their” entitlement spending

 I don’t think we will see any cuts until we have an  authoritarian type of government

Who knows what would happen since it hasn't happened in recent history?

[thackney]

And oil subsidies? Believe me, those exist. How much are those in comparison?  And yes, Cruz has spoken out against those. "...backed down King Corn right in their own back yard...", I can't even tell what that means.

http://www.thegazette.com/subject/news/government/fact-check/factchecker-does-ted-cruz-want-to-eliminate-all-subsidies-or-just-those-for-ethanol-20151218

From the article, the claimed "subsidy" for oil/gas:

However, Cruz does support letting oil companies expense intangible drilling costs. This allows oil and gas producers to deduct most of the costs of drilling new wells. Established in 1913, the rule acknowledged the risks of drilling wells that could turn up dry.

Allowing a business to deduct an actual business expense is now a subsidy?  Only if you are trying to demonize the oil/gas industry.  For every other industry, it is a normal business practice.

[TomSea]

Cruz himself said he's against subsidies for oil, if one disagrees with him, here is his Senate contact info:

https://www.cruz.senate.gov/?p=email_senator

[TomSea]

Haven't seen any corn ethanol subsidies taken out or for that matter, as Cruz spoke about, subsidies across the whole energy sector.  Unbelievable. Let's toast to victory! All hat, no cattle but whatever the 2nd amendmenter-small government circus would have us believe, okay.

[Sanguine]

Haven't seen any corn ethanol subsidies taken out or for that matter, as Cruz spoke about, subsidies across the whole energy sector.  Unbelievable. Let's toast to victory! All hat, no cattle but whatever the 2nd amendmenter-small government circus would have us believe, okay.

Um, Tom, he was talking about what he would do as Pres.  Since Trump stymied that, it sort of doesn't apply the way you're trying to apply it.

[DB]

Um, Tom, he was talking about what he would do as Pres.  Since Trump stymied that, it sort of doesn't apply the way you're trying to apply it.

And Trump at the same time campaigned on increasing these subsidies...

[Fishrrman]

(sigh)

I've posted this before.
I'll post it again.

Those who are concerned about the deficit, but have no power to do anything about it, can complain and wring their hands all they want, because...
...Those who have the power to address the deficit problem.... won't.

They won't, so long as they don't have to do anything about it.

They will only "do something about it" when they no longer have the choice NOT TO DO anything about it.

Those circumstances may arrive, eventually.
But when they do, those who then are forced "to do something about it" are going to take actions that "the rest of us" will find draconian and authoritarian.

That time isn't anywhere "close" yet.
I predict not for another 30-50 years.

Until then, enjoy the ride, and stop whining.

[IsailedawayfromFR]

And oil subsidies? Believe me, those exist. How much are those in comparison?  And yes, Cruz has spoken out against those. "...backed down King Corn right in their own back yard...", I can't even tell what that means.

http://www.thegazette.com/subject/news/government/fact-check/factchecker-does-ted-cruz-want-to-eliminate-all-subsidies-or-just-those-for-ethanol-20151218

That is a garbage site and has zero data on where those 'oil subsidies' you speak of exist.  Depreciation of a capital expenditure is definitely not a subsidy.

[IsailedawayfromFR]

I believe all the RATS and RINOs that control Congress are exerting great efforts to convince Americans to give up their IRAs and 401ks as they can 'save the debt problem'.