| Blogs > GavinLS2 > The Heretic |
|
WSJ: June revenues show surplus. Deficit shrinking. Sequestration working! Hate to admit it, but Obama's sequestration plan which he deserves credit for its inception, later maintained instead by supporting Republicans, and tho painful to many and controversial, is starting to show modest positive results. This should take some heat off both Obama and the GOP. The sequestration cuts, coupled with finally sufficient growth in employment figures and higher taxes on households making 450K+, the economy is gradually showing positive signs. Even running a surplus in June! From the 7/11/13 Wall Street Journal: By JEFFREY SPARSHOTT WASHINGTON—The U.S. government posted the biggest June budget surplus on record after receiving big dividend payments from mortgage giants Fannie Mae FNMA -4.58% and Freddie Mac, FMCC -4.17% leaving the federal government on track for its smallest full-year shortfall since 2008. Revenues outpaced spending by $116.50 billion last month, compared with a $59.74 billion deficit a year earlier, the Treasury Department said Thursday in a monthly report. Last month's black ink was the first June surplus in five years—reflecting a broadly improving fiscal outlook as well as almost $67 billion in payments from the two mortgage-finance companies. Other receipts are rising due to higher taxes and an improving economy, while spending is falling in part because of mandatory cuts. The better budget numbers ease pressure on the White House and Congress to strike a grand bargain that fixes long-term fiscal problems, including unsustainable growth in spending on Social Security and federal health-care programs. They also mean more breathing space for the Treasury under the federal debt ceiling. But sometime between September and November the government will run out of borrowing room, potentially forcing a political showdown over raising the cap. Without an increase in the debt ceiling, the government will eventually run out of cash to pay all its bills. White House officials have warned this could trigger market turmoil and hurt the economy. The budget deficit for the first three-quarters of the fiscal year, which started Oct. 1, totaled $509.83 billion, down about 44% from the same period a year earlier, the Treasury said. Receipts during the October to June period have jumped about 14% to $2.087 trillion, thanks largely to higher payroll taxes, higher tax rates for households making more than $450,000, solid job growth and stronger incomes. Spending for the nine-month period is down 5%. Defense outlays fell 7%. Unemployment payments declined 24%, reflecting an improving labor market as well as a reduction in extended jobless benefits. Under current policies, the deficit is expected to fall to $642 billion for the full fiscal year and get as low as $378 billion in 2015, according to Congressional Budget Office projections. The deficit for the prior year was $1.089 trillion. The last time the deficit was under $1 trillion was 2008, when spending outpaced revenue by $458.55 billion. (End of article) ----------- Not sure if this trend will last as those in higher income brackets make changes, and with the unpredictability of both the Fed and European economies, but it's nice to finally hear some good news! Hopefully we can eventually start paying down the national debt! (Note the last paragraph above tho. Paying down the National Dept won't really be a practical possibility until the deficit is completely gone. Gonna take a while for that to happen at this rate, but it's a start! If Congress and the Administration both keep adhering to these current practices, I'm betting that by 2015 we can actually begin to reduce the National Debt.) GBU all, Gavin |
|||
|
Well Bob, I sure hope not, but you do raise a valid concern when one considers history. GBU, Gavin
| ||
|
What do you bet Obama will take credit for the sequestration? I remember during the campaign when Obama said during one of the debates when he said the sequestration was CONGRESS'S Idea. He distanced himself from it at that time, I bet he will out there embracing it now. GBU, Gavin
| ||
7/12/2013 8:33 am |
The credit should go to the Republicans in congress. The reduction is the net result of differences between revenue and expenditures. If Obama had had his way he would have given untold billions to welfare queens, windmill projects doomed to fail, mosques, madrassas, and other socialist and Muslim causes. It was only the good sense and fiscal responsibility of the Republicans who fought Obama's wasteful ways that created this surplus.
| ||
7/12/2013 9:44 am |
I'm not inclined to believe any of it. My dad was an accountant who worked with Italian business men. I learned that it is a simple matter to "cook the books" and make the numbers say anything you want them to say and I would not put this practice past either the Reps or the Dems. Somehow the idea of "cooking the books" seems as consistent with politicians as it is with Italian business men. Remember your statistics and research class? You can conduct a study and analysis to support any conclusion if know the procedure. Spiritwoman ^i^
| ||
|
Taxing MORE and spending the same amount is the answer? What kind of perverted economic logic is that? Oh, I know ... it is Obamath. Spend until we are a wealthy nation again. I like it! Fossilfetcher I didn't mean to say we were out of the woods yet. But I think things MIGHT be starting to turn around. I agree taxing more is not a good thing, unless (as I think this article implies) the increased revenue from taxes is from an increase in employment. (I think any increases that have been imposed on the wealthy will eventually be repealed because many wealthy will leave the country, or manage to invest or hide their income as a means of paying less. That is only going to work against us, so I hope a repeal comes sooner rather than later.) I also think that people, politicians, and institutions are realizing the costs and practical impossibilities inherent in Obamacare and I forsee its repeal within one to three years. If not repeal, then it will be so amended as to be just another law on the books that serves no good purpose but causes no harm. I don't credit Obama's increase in taxes for much improvement. And sequestration was only a drop in the bucket. But it was a start. GBU, Gavin
| ||
|
Gavin...most of the cuts haven't been made yet. Millionaires and Billionaires have to pay their fair share. Obama also cut middle class taxes. It's now quite clear that Obama is repairing the disaster of the Bush administration. I also think Bush foresaw the mortgage crisis and tried to prevent the economic fiasco 2 years before it happened, but Barney Frank et. al. derailed his efforts. But TY for commenting and GBU, Gavin
| ||
|
I wasn't aware of this, but that's probably because I'm retired and don't draw a wages paycheck like that anymore. But are you sure it's 200 a month? I thought it was more modest. But I know many people didn't like what happened to their weekly paychecks. I thought it was about 10 to 15 per week. So the reason I ask is because at 200 a month (50/week) I'd have expected rioting in the streets! Knowing you, I'm hesitant to challenge your figures. Just asking if you're as sure of these figures as you usually are? Thanks for the info and GBU, Gavin
| ||
|
What do you bet Obama will take credit for the sequestration? I remember during the campaign when Obama said during one of the debates when he said the sequestration was CONGRESS'S Idea. He distanced himself from it at that time, I bet he will out there embracing it now. I'm sure both sides of the aisle will try to take all the credit. Thanks for commenting and GBU, Gavin
| ||
|
LOL! GBU, Gavin
| ||
|
The credit should go to the Republicans in congress. The reduction is the net result of differences between revenue and expenditures. If Obama had had his way he would have given untold billions to welfare queens, windmill projects doomed to fail, mosques, madrassas, and other socialist and Muslim causes. It was only the good sense and fiscal responsibility of the Republicans who fought Obama's wasteful ways that created this surplus. GBU, Gavin
| ||
|
Yeah Dan, I saw that stuff too. They don't realize that Republicans have no problem giving money to feed kids. But only IF the money ends up going to REALLY feed the kids! TY for commenting and GBU, Gavin
| ||
|
Hi to both Rich and Alpha! I totally agree! GBU, Gavin
| ||
|
TY Poet! MrsJoe has a knack for saying the correct thing, before a lot of us can realize it. GBU, Gavin
| ||
|
I'm not inclined to believe any of it. My dad was an accountant who worked with Italian business men. I learned that it is a simple matter to "cook the books" and make the numbers say anything you want them to say and I would not put this practice past either the Reps or the Dems. Somehow the idea of "cooking the books" seems as consistent with politicians as it is with Italian business men. Remember your statistics and research class? You can conduct a study and analysis to support any conclusion if know the procedure. Thank you SO MUCH for this comment! I deliberately responded to it last, because you point out exactly what I was trying to expose here! (That can be attested to by one other blogger who commented, whom I sent a letter explaining my objective here.) I put this blog entry up because there were those who took this same article, and only told half the story in a manner to make Obama look good, then challenged conservatives on it. Now I'll admit that I don't think the assumptions based on these statistics in this article are valid. These numbers change nothing. Many statistics (most frequently political and economic) can be, and often are, twisted and asserted to say anything one wants them to say. GBU, Gavin
|
×
×