Where’s the beef? - the House presents a “budget” with 150 billion annual spending cuts worth 1.5 trillion over the next decade - Biden’s extra spending was 2 trillion A YEAR
- DOGE is targeting that that much in spending cuts every year - not over ten years!
You can find details of the 2019 Trump budget here:
The link to the whitehouse.gov page for the Biden 2024 budget has been removed.
Maybe it is being updated for the upcoming Trump budget.
The key tables extracted previously are here:
Here’s the key tables, first Trumps 2019 budget:
And here’s (the removed) Biden’s 2024 budget:
Keep an eye on those last two lines for “Debt” compared to the 36.5 trillion debt load here:
U.S. National Debt Clock : Real Time
More on that later.
Broadly, for 2025, there is an extra half trillion a year in taxes (receipts) and an extra 2 trillion in spending (outlays). Multiply by ten to get the numbers over ten years.
An extra 5 trillion bucks in receipts and an extra 20 trillion in spending over the next decade!
Somehow or another we need to square the extra Biden spending - given the scamdemic ended in 2023, ending any emergency spending needs, with the “gold bars” thrown off the Titanic and codified into law via all those massive spending packages - like the ridiculously named “Inflation Reduction Act.
Regular readers will recall that spending and taxes should revert to the levels in Trump’s 2019 budget - AND SO SHOULD PRICES. In other words, there should be a reduction in growth from all the massive government spending AND deflation of prices in the economy.
Neither make good headlines, but this is the perversion that goes along with profligate spending and the inflation caused by it. “Normality” will only return to the economy if this (negative growth and deflation) happens - otherwise the “perversion” remains. Economic activity is “false” as it is not “productive” - prices are elevated because of this government interference in the economy. Much like the inflation in the price of eggs because the CDC is slaughtering them all (140 million so far!) because it has some sort of bogus H5N1 test.
Put bluntly, the US is suffering from a debt crisis that can only be fixed if spending is reduced by a sufficient amount to return a 700 billion fiscal surplus for a few decades - a spending reduction of around 2,5 trillion a year is required!!!
There have been lots of headlines around the goal of DOGE to cut spending (that increase from Biden’s odious administration) by a few trillion - or perhaps a trillion this year and a trillion next year. Each trillion is, obviously, worth ten trillion bucks over the next decade.
Now we have this headline:
GOP Wants $1.5 TRILLION In Cuts | patriotvoicedaily.com
“House Republicans have put forward a sweeping budget blueprint that seeks to advance President Donald Trump’s agenda while proposing significant spending cuts. The plan, which faces resistance from within the party, outlines $1.5 trillion in spending reductions over a decade, alongside $300 billion in new spending for border security and defence measures.”
Trump’s first term tax cuts are a big deal and must be re-approved, or taxes will increase, but 150 billion a year in spending cuts worth 1.5 trillion over the next decade.
Whoop-de-effing-do!!!
DOGE is targeting two trillion a year from the removal of the Democratic Party stench of corruption and fraud! Maybe a trillion a year this year alone!
In order to even BEGIN paying down the monstrous 36.5 trillion of national debt (excluding all the off balance sheet federal guarantees that are NOT included in that figure) - Trump MUST deliver fiscal surpluses at the same rate of 2-3% of GDP - by which the national debt was accumulated - 2-3% per annum of fiscal surpluses or around 700 billion bucks a year - for at least the next two decades!
This will remove 14 trillion of national debt and, in a few decades time GDP must also grow by around 60%, so that the Debt to GDP ratio reduces to an affordable 40% and the debt interest burden does not dominate all fiscal decisions.
Put it this way, if the US continues to run deficits of a trillion bucks a year - as the House seems to think it acceptable, in three years, the national debt will bust through the 40 trillion mark and interest o that debt will approach two trillion a year, That is al money that cannot be spent on health education, welfare and defence.
Of course, the alternative is to go “full commie” and raise taxes by the same 2.5 trillion a year - anyone fancy a 40% increase in their taxes?
Now, about that “Debt held by the public” of 30.0 trillion and 27.4 of “… net of financial assets” numbers, compared to the national debt of 36.5 trillion bucks.
From Brave AI:
“Debt held by the public net of financial assets is a measure of federal debt that subtracts the government's financial assets from its liabilities.
This measure provides a more comprehensive picture of federal finances, as it includes significant financial assets like student loan holdings and other investments. For example, in fiscal year 2022, financial assets totalled $2.0 trillion, so debt held by the public net of financial assets was roughly $22.3 trillion, or 89 percent of GDP.”
Brave AI does not mention the holdings by the Federal Reserve her:
System Open Market Account Holdings of Domestic Securities - FEDERAL RESERVE BANK of NEW YORK
The dd 4.1 trillion bucks of various Federal Treasury securities plus a few trillion of Freddie Mac and Fannie Mae debt (that I call “Fraudie” and “Funny” housing security (mortgage) debt,
By purchasing this federal and federal agency debt, the Federal Reserve has injected cash into the economy - which it calls a “bail out”. Quite why it cannot simply exchange a letter with the Treasury “cancelling2 this debt and reducing the Federal Debt is beyond me, Maybe it has all been lent out - rehypothecated - to the banking system via system repurchase (repos) and so the Federal Reserve does not actually “own” the debt. Maybe pension fuds think that they own the same debt!
Regardless, for those interested in the reconciliation of “inflation is a monetary phenomenon” and the impact of the Federal Reserve injecting money into the system - and other central banks doing the same. Check out this link and how stock markets seem to have a predilection to moving by the amount of central bank easing via monetary “bailouts”.
Balance Sheets - Yardeni Research
Other holders of debt that might not be held by the private sector are the Social Security funds. From Brave AI:
“The net liabilities of the Social Security funds, as shown in the 2021 Trustees’ Report, indicate a significant funding shortfall over the next 75 years. Specifically, the unfunded liability over this period is estimated to be $19.8 trillion, which is equivalent to 3.4% of taxable payroll and 1.2% of GDP over the same period.”
“The Social Security trust funds invest in special-issue Treasury securities, which are not available to the public and are issued exclusively for the trust funds. These securities are typically held for periods of 1 to 15 years and earn interest at a market rate. As of now, the trust funds no longer hold public issues or marketable securities.”
“No longer hold…”.
So the US Treasury/Federal debt in public hands can only be whatever Student Loans that the Bide Administration has not written off from the 2 trillion mentioned above -the rump of old SLMA or Sally Mae debt owed by female middle class Democratic Party voters for basket weaving and DEI degrees, etc.
Which leaves that Treasury debt on the Fed’s balance sheet. Tim to exchange letters and cancel the debt? Maybe cancel the Fraudie and Funny debt and give Americans a boost by forgiving their mortgage debt as well?
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Onwards!!!
Congress is nearly worthless, except its grifters are so stinking expensive!
Why are we even talking about this when all that money is fake? It’s fake money with nothing to back it up.