Analysis of the Deficit, Fiscal Cliff, and US Debt
Govt spends $80B on Sequestration Day 1
I know that I said yesterday I wasn’t going to publish the daily deficit for 3/1, but I changed my mind because I think it illustrates the absurdity of the deficit/debt debates we’ve been having for the last few years. The US Daily Cash Deficit for 3/1/2013 was $53.5B…in one friggin day!! The tax increases on the wealthy democrats have been wanting for a decade and finally passed last year bring in a meager $60B per year…as estimated by the CBO…which almost certainly means the numbers are bogus, and it will probably turn out to be $20-$30B in reality. The dreaded sequester…which will hollow out our economy, leave millions homeless and our borders suseptable to Viking Invaders…a mere $85B. So if we can blow through…in one single day almost the same amount we are discussing “cutting” or “taxing” in an entire year, maybe, just maybe, we are not quite grasping the reality of the situation.
I imagine a financial planner sitting down with a couple making $50k a year, but spending $200k. The planner says…you know, this isn’t sustainable, you guys need to cut back. So the wife…sipping a $200 bottle of wine says..you know…I guess we could cut back on the wine a bit. The planner looks at her incredulously…”Lady…I don’t think you understand. You are going to lose your house, your cars…you can forget about wine…you need to start applying for government housing because you are going to be living in a cardboard box in about a week.” That’s the reality of our situation. Uncle Sam is broke as hell and functionally bankrupt. Without the ability to print money and essentially sell ourselves our own debt via our buddies at the federal reserve and playing games with the “trust fund” we would have “for real” bankrupt years ago.
So here it is…On the first day of the sequester…$75B of spending ($80B if you include refunds) out the door. Raise your hand if you think this will end well.