(American Thinker) — Here’s news that will assure more Bidenflation than we will know what to do with.
According to The Hill:
The U.S. deficit is projected to roughly double this year, largely due to higher interest rates and lower tax revenue.
The Committee for a Responsible Federal Budget, an organization that pushes for lowering the deficit, is projecting the federal deficit will double this year to total about $2 trillion for the fiscal year that ends Sept. 30. Marc Goldwein, senior policy director at the organization, told The Hill that high interest rates, lower tax revenues and high inflation resulting in higher Social Security and Medicare costs have all contributed to the rising deficit.
‘A big part of the story is just that there was sort of a one-time huge revenue surge in 2022 that’s done,’ Goldwein said. ‘But the other stories are that we have structurally deficits really rising in 2023. And that’s a lot of that is because of interest costs.’
‘These things add up,’ he added. ‘It’s no one thing that’s causing us to go from $1 trillion to $2 trillion. It’s like six things.’
The Congressional Budget Office estimated last month that the federal budget deficit reached $1.6 trillion in the 10-month period ending in July.
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Which kind of stands out, given the number of sound bites we’ve had to put up with from President Joe Biden and his acolytes and staff.
Here’s one from the White House with this headline:
FACT SHEET: The President’s Budget Reduces Deficits by Nearly $3 Trillion Over 10 Years
With this kind of drivel:
The President has done all of this while delivering on his commitment to fiscal responsibility. While the previous administration passed a nearly $2 trillion unpaid-for tax cut with benefits skewed to the wealthy and big corporations while dramatically increasing the deficit, President Biden cut the deficit by more than $1.7 trillion during his first two years in office – the largest decline in American history.
Well, no, he didn’t. Just look at the $2 trillion deficit now. All that to pay for bureaucrats, government mandates, expansions, and other instruments of surveillance and repression, a prosecution of Donald Trump, union political activity, COVID payout fraud, billions for Ukraine, and a welfare free-for-all for illegals. He was making these claims after he got Congress to pass his badly misnamed “Inflation Reduction Act of 2022.”
It goes to show what a liar Biden is, gaslighting instead of governing, leaving the U.S. in roughly the same condition as Argentina.
What’s bad here is that too much government spending is where inflation comes from. This comes at a bad time, when the Saudis and other major oil producers have looked at the coming economic situation and opted to cut production.
Less production means higher oil prices, which is sure to filter through to the economy through higher prices for everything affected by oil: transport, agricultural goods, food, factory goods, construction materials, clothing prices, and more. Biden, of course, will blame the oil producers, and tell us that as far as inflation goes, Putin did it.
But the higher oil prices didn’t come from the oil itself or “greedy” producers. It came as a defensive move by those who produce oil, eyeing Biden’s bad economy and all that interest Americans will be shelling out on that deficit (for nothing) and deciding there won’t be that much need for their oil, because the economy is going to slow.
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Lucky us. What’s disgusting here is that the media and those who are paid to serve as watchdogs, official or unofficial, have largely said nothing. They just let Biden get away with his phony claims about reducing the deficit. Worse still, Republicans, who have one House in Congress, have not been effective in at least speaking out and making this an election issue. So here we are. And what comes of deficits is a whole lot of money that could be put to productive uses going to interest payments instead and inflation taking over as the Fed prints cash.
Mickey Kaus noticed:
One factor cited by @washingtonpost in the deficit’s growth is the Inflation Reduction Act “sending billions of dollars out.” Weren’t we told the Inflation Reduction Act would *lower* the deficit? I think we were! https://t.co/I2HuzCNWkQ https://t.co/bGerWBa9oV
— Mickey Kaus (@kausmickey) September 4, 2023
As he typically is, he’s right on the money.
Reprinted with permission from American Thinker.