US deficit hits $2.8 trillion, second largest in history

[Natural Citizen]

Well. I dunno. Keynesians gonna Keynes? That's all I got.

US deficit hits $2.8 trillion, second largest in history

The Treasury Department said Friday that the federal deficit reached $2.8 trillion in fiscal 2021, the second largest deficit in history.

thehill.com

Because the deficit comes in second behind the previous year's 3.13 trillion, the loons are calling it a sign of a recovering economy. Heh heh.

Again the second highest deficit in history... and it's a good sign that the economy is recovering?

What the actual heck. These people are nuts.

For reference, after the '08 crash the '09 deficit was 1.4 trillion.

And they still have a couple of bills out there that they claim won't cost anything.

 

[Oddball]

But no more mean tweets!

 

[Fueri]

Don't worry, inflation is a good sign, according to Psaki.

Empty shelves, also good.

 

[Mac1958]

"The number, however, is down $360 billion from the record set during the previous fiscal year."

 

[Crepitus]

Well. I dunno. Keynesians gonna Keynes? That's all I got.

US deficit hits $2.8 trillion, second largest in history

The Treasury Department said Friday that the federal deficit reached $2.8 trillion in fiscal 2021, the second largest deficit in history.

thehill.com

Because the deficit comes in second behind the previous year's 3.13 trillion, the loons are calling it a sign of a recovering economy. Heh heh.

Again the second highest deficit in history... and it's a good sign that the economy is recovering?

What the actual heck. These people are nuts.

For reference, after the '08 crash the '09 deficit was 1.4 trillion.

And they still have a couple of bills out there that they claim won't cost anything.

It's heading in the right direction for a change.

 

[Natural Citizen]

For the benefit of the casual passer-by who may or not not understand how the con is gonna go down, I'll explain. And I'll exlpain as country simply as I possibly can. It's gonna go down the same way the con always goes down. Because the people on the television aren't going to. Nor are any of the partisan web sites that focus on political football rather than the critical nature of this stuff works and how it genuinely affects you, the taxpayer, whose bank accounts the current administration wants to employ thousands more of the Federal Reserve's collection wing, the IRS, to monitor in preparation for the coming payments.

It's not in their interest for you to know how it goes down because both sides of the party-of-one are guilty. When one side of the party-of-one is in power, the other side of the party of one complains. But then when the side complaining gets back in power, they do the same thing the people they were complaining about were doing and then the other side of the party-of-one complains about them. The only difference is which special interests benefit from whichever side of the party-of-one is in power at a given moment.

Anyway. To pay for the deficit spending, the Treasury is going to borrow currency by issuing a bond.

Lets start with a bond. What is that? I'll explain. A bond is an IOU that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest.

But...Treasury bonds are the national debt. Okay?

Anyway. The Treasury will hold a bond auction.

Then the world's largest banks show up and compete with one another to buy part of that national debt and to make a profit on it by earning interest.

The banks then sell some of these bonds to the Federal Reserve for a profit.

This is a shell game called 'open market operations''

Now. How does the Federal Reserve pay the banks for these Treasury bonds? I'll explain.

What it does is it writes a hot check that should technically bounce because the check is drawn on an account that always has nothing in it.

To steal a quote from the Boston Federal Reserve's ''Putting it Simply", they say that ''When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating ''money.”

So then the Federal Reserve passes those hot checks to the banks and at this point ''currency'' magically comes into existence.

It's inflating the money supply, aka inflation.

The banks then take that ''currency'' (because to actually be ''money'' there must be a store of value..which there isn't...so it's just devalued ''currency'') and then they buy more bonds at the next Treasury auction.

And then they just do it over and over and over and over and over again.

The whole time this is happening, the Federal Reserve's collection wing, the IRS, is robbing you of your wealth at the barrel of a government gun and handng it over to the Treasury so that the Treasury can pay the principal plus the interest on that Bond that the Federal Reserve bought with a hot check.

So. The next time Jen Psaki pops about about inflation or debt in such a shallow way, perhaps someone might ask her about that. Of course, they won't, but even if they did, she'd just stand there like a deer in headlights.

 

[initforme]

Now is no time to even consider the debt. Pffffft