Pence slams Biden over federal deficit heading back to $2 trillion

[ipatent]

Pence slams Biden over federal deficit heading back to $2 trillion

Pence's statement references a Washington Post article on Sunday on the U.S. deficit exploding even as the economy continues to grow. The deficit is the amount by which federal spending exceeds revenues.

After historic federal spending in 2020 and 2021 due to the coronavirus pandemic, the deficit decreased to $1 trillion in 2022. But by Sept. 30, when the fiscal year ends, the deficit will have shot back up to roughly $2 trillion, according to the Committee for a Responsible Federal Budget. As Congress returns to Capitol Hill this month, the deficit will surely be a topic as leaders seek to fund the government past the Sept. 30 deadline. Pence, a former member of Congress, slammed the news of the deficit nearly doubling in 2023.

“Our economy remains on a downward spiral with an exploding federal deficit driving inflation and erasing wage gains. Americans deserve better than what Washington, D.C., is offering and Americans deserve a government as good as its people," Pence said. "That’s why I’m pledging to you that when I am elected President, we will unleash the ingenuity of the American worker and tackle the unsustainable debt and deficit issues facing our Nation.”

 

[Overnight]

..."That’s why I’m pledging to you that when I am elected President, we will unleash the ingenuity of the American worker and tackle the unsustainable debt and deficit issues facing our Nation.”

Blah blah blah, they all say the same thing. So hollow. Next!

 

[notagain]

Pump an additional 2 million barrels of oil to lower inflation.
Cut credit card interest rates (usury).
Close overseas military bases while increasing the submarine fleet.
If the Dems lose 2024, what stocks do well during a civil war?

 

[Tony Stark]

Hes not wrong but Id like to see what Pence said when Bush turned a 200 billion dollar surplus into a 1.4 trillion dollar deficit or when Trump turned a 600 billion dollar deficit into a 3.1 trillion dollar deficit.

 

[newwurldmn]

Hes not wrong but Id like to see what Pence said when Bush turned a 200 billion dollar surplus into a 1.4 trillion dollar deficit or when Trump turned a 600 billion dollar deficit into a 3.1 trillion dollar deficit.

those were awesome moves by real leaders of economic thought.

 

[gwb-trading]

So, it turns out all those tax cuts we've been doing don't pay for themselves. $7.6 trillion in debt comes due over the upcoming year and will have to be refinanced at much higher rates.

$7.6 trillion of US government debt will mature in the next year, adding pressure on rates
https://finance.yahoo.com/news/7-6-trillion-us-government-040643412.html

• A whopping $7.6 trillion in interest-bearing US public debt will mature within a year, Apollo's chief economist said.
• That represents 31% of all outstanding US government debt, adding upward pressure on rates.
• That's still below 2020, when debt maturing within a year made up a significantly larger share.

Nearly a third of all outstanding US government debt is set to mature in the next 12 months, according to an analysis from asset management firm Apollo.

A chart from Chief Economist Torsten Sløk shows that the share of US public debt set to mature in a year or less has steadily risen toward pandemic-era levels and is now at 31%. In terms of dollar amount, that's $7.6 trillion, a high not seen since early 2021.

In addition, public debt maturing in the near term accounts for more than a quarter of US GDP. However, this is below its 2020 peak, when it made up a significantly larger share.

Still, Sløk said the $7.6 trillion coming due is one source of upward pressure on US rates.

The estimate comes as federal deficits have exploded in recent years, sharply elevating the trajectory of US debt. The Treasury Department has already auctioned $1 trillion in bonds just within this quarter.

Meanwhile, borrowing costs have soared in the last year and a half as the Federal Reserve embarked on an aggressive tightening campaign, raising the government's debt-servicing costs.

As of Friday afternoon, the 10-year Treasury yield stood at 4.25%, and three-month yield was 5.47%.

Rates have also been under pressure from the Fed's quantitative tightening program, which removed a top buyer from the bond market.

The central bank has allowed about $1 trillion of its debt holdings to run off its balance sheet. Though yields have climbed in recent months, the overall impact of QT on the marketplace has been limited so far, as the Treasury has found ample buyers among money market funds and private traders.

But according to a St. Louis Fed research paper from late August, money market fund participation in recent T-bill auctions has begun flattening out.

Read the original article on Business Insider

 

[newwurldmn]

The money hasn’t trickled down yet. Wait a few more years. All those designers in Milan and Modena will surely start buying good ol American products.

 

[Cuddles]

Pence slams Biden over federal deficit heading back to $2 trillion

Pence's statement references a Washington Post article on Sunday on the U.S. deficit exploding even as the economy continues to grow. The deficit is the amount by which federal spending exceeds revenues.

After historic federal spending in 2020 and 2021 due to the coronavirus pandemic, the deficit decreased to $1 trillion in 2022. But by Sept. 30, when the fiscal year ends, the deficit will have shot back up to roughly $2 trillion, according to the Committee for a Responsible Federal Budget. As Congress returns to Capitol Hill this month, the deficit will surely be a topic as leaders seek to fund the government past the Sept. 30 deadline. Pence, a former member of Congress, slammed the news of the deficit nearly doubling in 2023.

“Our economy remains on a downward spiral with an exploding federal deficit driving inflation and erasing wage gains. Americans deserve better than what Washington, D.C., is offering and Americans deserve a government as good as its people," Pence said. "That’s why I’m pledging to you that when I am elected President, we will unleash the ingenuity of the American worker and tackle the unsustainable debt and deficit issues facing our Nation.”

1.3T of that was predicted 5 years ago by expert economists when the Trump tax cuts were passed:
https://www.elitetrader.com/et/threads/republican-tax-plan-is-garbage-say-3-studies.315343/

 

[Frederick Foresight]