Make no mistake, the US government is on the road to ruin, and the consequences will ripple far beyond finance and economics. From MN Gordon at economicprism.com:
The U.S. government’s 2021 fiscal year came and went like Dow 36,000.
With respect to the latter, authors James Glassman and Kevin Hassett were only off by 17 years in their 1999 forecast of Dow 36,000 by 2005. At this point, the attainment of their prediction is a giant letdown.
With respect to the former, we have a question: Does President Biden have any idea that the government he pretends to oversee is skirting the edge of insolvency?
Most Americans, like Biden, could care less about how the fiscal year’s final ledger tallied. Three generations of budget deficits without pain have spread complacency about the ability of Americans to consume without paying. Deficits don’t matter to voters.
Presently, only conspiracy theorists and wackos still place any importance on the archaic practice of government accounting. Why bother, when you can buy shares of Tesla and hold on for the end of the world?
In case you missed it – and actually care – here are a couple of the high points and low points…
Receipts for the full 2021 fiscal year, which ran from October 1 through September 30, totaled $4.046 trillion. This marked an 18.3 percent increase of $626 billion from fiscal year 2020.
However, 2021 fiscal year spending jumped by 4.1 percent, or by $266 billion, from fiscal year 2020 to $6.818 trillion. So, while receipts went up, spending went up too. The difference between the two, known as the budget deficit, totaled $2.772 trillion.
Quite frankly, a $2.772 trillion budget deficit is a disgrace. It represents an extreme failure of government. But it is a slight improvement over the $3.132 trillion budget deficit that was racked up in fiscal year 2020. Regardless, the U.S. government is spending like a banana republic.
Let’s take a closer look…