Boom Nets Trillion Dollar Shortfall, Trump’s Tax Cuts for Rich a Disaster

Runaway debt despite Obama's boom economy

By
Jim W. Dean and Gordon Duff
-
10
2437

The Trump administration will borrow about $769 billion before the end of the year. Critics say it’s all about the tax cuts.

US government borrowing needs will total $329 billion between July and September of 2018, according to a Monday Treasury Department report obtained by Bloomberg. That figure is 74 percent higher than the $189 billion borrowed in the same timespan a year ago, the report says.

The government will need another $440 billion between October and the end of the year, making the total figure $769 billion — the highest borrowing level since 2008.

During that year, the Obama administration, dealing with the global financial crisis and the deep recession that ensued, had to borrow a whopping $1.1 trillion between July and December.



According to an announcement by the administration of US President Donald Trump earlier in July, this year’s deficit will total $890 billion, $17 billion more than earlier estimations and significantly more than the Congressional Budget Office’s prediction of $793 billion.

The deficit is expected to rise to $1.1 trillion in 2019 and stay there until 2021, when it is projected to fall, the report says.

Trump’s critics say the skyrocketing deficit is a consequence of the $1.5 billion in tax cuts the president pushed Congress to approve last year. Trump’s opponents argue that, with the US’ low unemployment and strong economic growth, large tax cuts will drive deficits higher, which might force the Federal Reserve to increase interest rates in order to curb inflation.

However, the administration has countered that the booming economy will soon boost government revenue and reduce the deficit. According to a report by the US Commerce Department published on Friday, the US economy expanded at a rate of 4.1 percent in the previous quarter, which is the highest growth rate since the 5.2 percent mark posted in the third quarter of 2014, according to The Hill.

The exact contents of the securities mix that the US Treasury will issue to fund the $329 billion bill will be published Wednesday.

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10 COMMENTS

  2. We subsidize farmers, and they sell the product to China ? We allow eminent domain and resource grabbing to pipeline and oil companies, and they sell it to whomever ? The churches are all tax free, and the opulence is off the charts ? Our widows are looted and government contracts are candy to multi-billion dollar companies, and folks are worried about a couple neighbors who need help or rescue, from the very economic warfare, the predatory idiots are waging ?
    You do not know opulence , until you have ten people employed full time, just to open and close the doors, each day in a single section of your tax free house. The one full of looted treasure from around the earth.
    https://www.youtube.com/watch?v=xg8SVfl40NU
    Inside the Vatican Museums | EWTN Vaticano Special

  3. Has anyone here been paying attention to current events in Greece? And I’m not speaking of the tragic fires. Detroit’s bankruptcy was a test case which led directly to the water problem (lead), caused by the court appointed experts criminal attitude. By the way not one went to prison. That my friends is our future if we continue being the Federal Reserve’s bitch.

  4. Can anyone tell us why “we” need to borrow our money? What service does the Fed provide that is so unique it deserves to earn the $500 billion interest “we” will pay it this year? The Federal Reserve Inc. should be paying “us” for the personal protection provided it by “our” military. As any honest economist will tell “you” the value of a nation’s currency is a direct result of the productive labor of the nation’s workers, i.e. GDP. At least that’s the way it is supposed to work, and the way it used to work. What great calamity would befall “us” if we closed the Fed down and refused to pay? I welcome all answer to my last question.

    • Perhaps we could round the insane criminals up and put them in jail. Revoke the charter of the federal reserve bank and release treasury notes after declaring the debt null and void as it was a criminal act of fraud against the nation.

  5. “the booming economy will soon boost government revenue and reduce the deficit”…we’ve never heard that one before, have we? Isn’t this just another way to say that ‘trickle down’ works? And exactly where is this ‘boom’ we keep hearing about? In some CPAs wet dream? They’ve been cutting high end and corporate taxes for the last 38 years and wages have been stagnant ever since. Tax cuts and runaway military spending…yep, these guys are as fiscally ‘conservative’ as GW. Damn, the US citizens will swallow anything.

  7. No one should loan our totally corrupt government one dime to fund this obscene and unnecessary military deficits destroying our country and the world. For the past 25 years interest rates have been artificially low to fund these government deficits shafting senior citizens out of life savings. Interest rates must be raised back up to about 10% or higher.

  8. They are also blowing trillions of fake borrowed dollars on the military when there is not even a declared war anywhere. We waste billions on bases all over the planet. These must be closed.
    The countries hosting these bases should boot us out. By the way, how did the four star generals do “defending” the country on 9/11/01 from the attack on the Towers in NY by Israel but blamed falsely on Muslims? These traitors in the pentagon did not lift a finger to defend the country that day did they, their most basic responsibility. Did you observe any planes scrambled to shoot down the airliners which hit the towers? NO. But these traitors at the Pentagon were permitted to retire on lavish pensions. This country is a shameful disgrace. Traitors Bush, Cheney and the four star generals should all be sitting in a jail cell, not retired on lavish pensions.

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