Tyler Durden of Zero Hedge writes: 2024 was the year when the runaway US budget deficit was supposed to gradually normalize, and after two crisis years, the US was supposed to end its drunken sailor spending ways. And for a while there, it seemed touch and go, with the cumulative US deficit initially overtaking 2023 – forget about the batshit insane 2021 and 2022 when the deficit hit a mindboggling 18% of GDP…
The debt exploded the August budget deficit to a new historical high. The deficit was a staggerin $380 billion, up 50% from July. The Treasury posted it at 5 am.
Interest on the national debt is the fastest-growing item in the federal budget. It now consumes 25% of all government revenue, which is $5 trillion annually. The US is on pace for over $2 trillion next year.
We are in big trouble. Fifty-five cents of every dollar the federal government spent in August was borrowed.
If you like this, definitely vote for Kamala Harris. This is her “opportunity economy,” a new name for Bidenomics. It’s a socialist disaster. She promised to keep spending, high taxation, and non-stop wealth redistribution.
Treasury has already paid over $1 trillion in interest on the federal debt this FY, and we still have 1 month to go; the cost to service the debt is up about $250 billion compared to first 11 months of prior FY: pic.twitter.com/hC8ELrkW3D
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
Endgame: Interest On US Debt Surpasses $1 Trillion For First Time Ever, Exploding August Budget Deficit To Record High https://t.co/0Ecj701aBW
— zerohedge (@zerohedge) September 13, 2024
Inflation has outpaced earnings so fast since Jan ’21 that real weekly earnings are down 5% – both the decline in real wages and the exploding debt are unsustainable: pic.twitter.com/5Dpy60IbNs
— E.J. Antoni, Ph.D. (@RealEJAntoni) November 1, 2023
Treasury has already paid over $1 trillion in interest on the federal debt this FY, and we still have 1 month to go; the cost to service the debt is up about $250 billion compared to first 11 months of prior FY: pic.twitter.com/hC8ELrkW3D
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
Aug wasn’t just the worst federal deficit of FY ’24, but worse than any month in ’23 too; federal finance isn’t improving – it’s deteriorating: pic.twitter.com/zGOJXyRPpx
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
We’re crashing and burning in real-time.
Since we’re once again way past Treasury’s estimated deficit for the current FY, we can only assume that next FY’s $1.9 trillion projected deficit is also a gross underestimation: pic.twitter.com/pQEcKQDevD
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
Remember those deficit projections of $1.7 trillion for the current FY? We’re already at $1.9 trillion, w/ another month to go: pic.twitter.com/jyZYoPasYV
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
No good news here.
Federal debt is down $37 billion over the last 2 days, but that’s b/c Treasury drained another $45 billion in cash; this just delays the next jump in the debt – it’s not a sign of structural surpluses: pic.twitter.com/YhGBbVYg1p
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 12, 2024
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