Why Doge? Federal Deficit Is Up $306 Billion Compared to Same Period Last Year (Long-run Deficits Are Grim!)

When the (fiscal) music’s over. For corrupt politicians, that is!

Mike Shedlock (aka, Mish) had a great article on the fiscal dumpster fire facing the Trump Administration. After you get a load of the long-run deficits and debt load, you can understand why Trump wants to cut Federal waste (Doge).

The US deficit for the first four months of fiscal Year 2025 is $838 billion, up $306 billion. Adjusted, the increase is more like $157 billion to $225 billion.

The federal budget deficit totaled $838 billion in the first four months of fiscal year 2025, the Congressional Budget Office estimates. That amount is $306 billion more than the deficit recorded during the same period last fiscal year. Revenues were $11 billion (or 1 percent) higher, and outlays were $317 billion (or 15 percent) higher.

The change in the deficit was influenced by the timing of outlays and revenues, which decreased the deficit during the first four months of fiscal year 2024 but increased it during the same period this fiscal year. Outlays in October 2023 were reduced by shifts in the timing of payments that were due on October 1, 2023, a Sunday. (The payments were made that September.) Outlays in the first four months of 2025 rose, on net, because payments due on February 1, 2025, a Saturday, were made in January. If not for those shifts, the deficit so far this fiscal year would have been $750 billion, or $146 billion more than the shortfall at this point last year. Part of the deficit increase in 2025 also arises from the postponement of some tax deadlines from 2023 to 2024 (described below), which boosted receipts in 2024.

The long-run deficits are grim, according to the CBO.

Outlays in the first four months of fiscal year 2025 were $2.4 trillion, CBO estimates, $317 billion more than during the same period last year. If not for the timing shifts discussed above, outlays so far in fiscal year 2025 would have been $157 billion (or 7 percent) greater than outlays during the same four months in fiscal year 2024. The discussion below reflects adjustments to exclude the effects of those timing shifts.

Maxine Waters is an unhappy girl along with most Democrats about Trump and Musk looking into USAID.

Welcome to a new world under Trump.

Biden Boogie! Biden’s Final Punch In The Jaw, Greatest Fiscal Deficit To Start The Year In History, Largest Debt Load, Interest Expense Now Exceeds Social Security

It is the Biden Boogie!

Joe Biden is leaving the Presidency with an attrocious record. While saying he is leaving Trump with the strongest economy in modern times, the is actually leaving Trump and Republicans with a hollow shell for an economy. It is the final punch in the jaw from an angry, failed President.

The following chart shows that in October and November, the US deficit exploded to a staggering $624.2 billion, and even though this included several calendar adjustments – which explains the freak September surplus which as we said was due to calendar effects – the November deficit of $367 billion was $14 billion more than consensus estimates of $353 billion. Worse, combining October and November we find that not only was the combined number of $624 billion some 64% higher than the corresponding period one year ago, but it was also the highest deficit on record for the first two-months of the year (and that includes the spending insanity during the covid crisis).

Putting the deficit in context, the budget deficit in October and November – the first two months of fiscal 2025 – are now officially the worst start a year for the US Treasury on record.

No wonder even Statist Janet Yellen (Treasury Secretary who failed utterly at her job) apologized that her abysmal performance. “I am concerned about fiscal sustainability and I am sorry that we haven’t made more progress,” she said adding that “I believe that the deficit needs to be brought down especially now that we’re in an environment of higher interest rates.” Meanwhile Biden keeps handing out $$$ to Ukraine, Africa, Syria, illegal immigrants and anything else that asks … unless it it American citizens. Man, does Biden HATE America!

Here is Yellen’s record on debt. A total of $15.2 TRILLION under her leadership.

Under Biden/Yellen (don’t forget Senate fools like Schumer and McConnell!), debt interest has surpassed Social Security and Medicare as the second largest government agency expense.

Biden is a classic progressive Democrat, spending other people’s money like a wild man (sort of like California Governor “Greasy Gavin” Newsom’s father. Or grandfather. And let’s not forget the $222 TRILLION in UNFUNDED liabilities such as Social Security and Medicare.

“See Joe, I can destroy California’s economy just like you destroyed the US economy!”

Biden/Harris Replicates Reagan’s Soviet Bankruptcy Strategy IN REVERSE, US Debt Stands At $36 TRILLION With $220.3 TRILLION In Unfunded Liabilities (Too Bad Total US Assets Are Only $217 TRILLON)

I just watched Dennis Quaid in “Reagan”. Excellent film. But it reminded me of how Reagan sank the Soviet Union: by outspending the Soviet Union on the arms race. It worked! The Soviet Union, hamstrung by grossly inefficent central planning, couldn’t keep up and collapsed under President George H.W.Bush.

Fast forward to today. Starting with Barack Obama and Joe Biden in 2009, following the financial crisis in 2008. The Federal government ramped up Federal spending, and Federal debt. While The Federal Reserve, the hand maiden to the Federal government, ramped up M2 Money supply.

“You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things that you think you could not do before.” – Rahm Emmanuel

Then came Biden/Harris who drove Federal debt and spending to absurb level (orange box). Like the financial crisis, fans of big government and big government spending will utter the word “Covid.” But that is gross misleading. Covid was the excused for wild spending and debt issurance. And MORE Fed money printing. It’s almost as if Obama/Biden/Harris were replicating Reagan’s bankrupcy strategy in reverse! That is, collapsing the US from within.

As we are all painfully aware, the US Debt now stands at $36 TRILLION with $220.3 TRILLION in unfunded liabilities. Too bad total US Assets are only $217 TRILLON.

Do I believe that Obama/Biden/Harris want a “Great Reset”? Absolutley. Just look at our fiscally unsustable open borders and our politiicians blatanly lying to us. :Like Ohio’s Senator Sherrod Brown who brags about his helping write the border bill that would reverse Trump’s deportations and fund the speeding up of immigration.

$36 Tons Of Debt! Federal Gov’t Ends 2024 With $1.8 Trillion Deficit As National Debt Nears $36 Trillion (Family Of Five Citizens Has A Liability Of $3.25 Million For Unfunded Liabilities)

Tennessee Ernie Ford sang it best. $36 tons of debt. Another day older and deeper in debt. Notice virually no political candidate will acknowledge or discuss.

The federal government spent $1.8 trillion more than it collected in tax revenue in fiscal year 2024, according to figures released Friday by U.S. Treasury Department.

Congress has run a deficit every year since 2001. In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001.

The deficit for fiscal 2024 was $1.8 trillion, or $138 billion higher than the prior year’s deficit. As a percentage of GDP, the deficit was 6.4%, an increase from 6.2% in fiscal 2023. The 2024 deficit is $196 billion lower than in 2023, excluding the effect of the Supreme Court’s 2023 decision in Biden v. Nebraska regarding student loan programs, according to year-end data from the September 2024 Monthly Treasury Statement of Receipts and Outlays of the United States Government.

And then we have the REAL disaster in the form of unfunded liabilities of $220 TRIILLION (or $651,000 per citizen). For a family of 5 citizens (like my household), that amounts to $3.26 MILLION per household of 5.

Imagine Kamala’s filibustering a response to a question about the national debt and unfunded liabilities. Other than “Donald Trump.”

Perhaps Tennesse Ernie Ford could have recorded “220 Trillion Tons of Unfunded Liabilities” instead.

US Unfunded Liabilities Total $217.63 Trillion While TOTAL US National Assets Equal Only $210 Trillion (National Debt Equals $35 Trillion And Growing Awfully Fast!) Unfunded Liabilities 6.23X National Debt!

This scene from the film “McCabe and Mrs. Miller” sums up our political plight quite nicley. Politicians spend like crazy to stay in power (Biden/Harris) are excellent examples). Politicians promises endless money, then shoot the economy. The US is broke and relies on printing money and boowed funds to stay afloat. Harris wants to raise taxes on everyone to fund her plans like even MORE emphasis of failed green energy schemes and endless foreign wars. I doubt if Harris could defend her spending plans in light of the US already $35 TRILLION in debt.

Even more worrisome if thev fact that DC politicians have promised entitlements (Social Security, Medicare, etc. totalling $217.63 Trillion. Or 623% higher than the rapidly increasing national debt.

Biden/Harris raised thr national debt by 25% in less than 4 years. And Harris wants to increase spending! Harris wants illegal immigrants put on Social Security and Medicare, further bankrupting those entitlement programs.

Let’s see Harris explain her indefensible budget (like raising taxes and not hurting economic growth).

Biden’s $7.3 TRILLION Budget Is DOA In House, Massive Tax Increases Proposed So Biden Can Spend Even MORE Money (Federal Deficit Expected To Explode To $16 TRILLION Over Next Decade)

Every little thing Biden touches turns into disaster. Like the Federal Budget(consider it the fiscal version of the Afghanistan withdrawal).

Following yesterday’s release of Biden’s $7.3 trillion budget, the Biden administration bragged about lowering the deficit by $3 trillion over the next decade – an average of 0.8% of GDP over that period.

This would consist of roughly $2.6 trillion over 10 years in additional spending programs, offset by around $4.8 trillion in tax increases over the same period. Most of the tax and spending proposals have been included in prior budget proposals from the White House, according to Goldman’s Alec Phillips, however there are several new items.

The budget would increase the corporate alternative minimum tax on book income from 15% to 21%, raising $137 billion over the next decade. It also limits a corporation’s ability to deduct employee pay exceeding $1mm/year, raising $272 billion over 10 years. The largest proposed tax increases include; raising the corporate minimum tax from 21% to 28%, as well as a series of tax increases on high-income earners, including new Medicare taxes, and a new 25% minimum tax on incomes over $100 million, raising $500 billion over the next decade.

Of course, it has zero chance of passing under the current Congress – but that’s not the point.

As one DC strategist wrote in a morning email noted by CNBC‘s Brian Sullivan, the budget deficit will still grow by another $16 trillion over the next decade – and that’s with aforementioned tax hikes.

Without them, the deficit grows to $19 trillion.

In short, talk of ‘$3 trillion saved’ is total bullshit in the grand scheme of things, given how much the national debt will grow in the best case scenario.

“No family budget or business could exist with this kind of math,” says Sullivan.

Yes Brian, no family budget could exist with this kind of math AND SPENDING!

And the national debt is rising by $1 TRILLION every 100 days. Before Spending Joe’s budget!

Go back to sleep Joe. Yellen will wake you up if something important happens. Like the US defaults on its debt.