Archive for the ‘Deficit’ Category

How the Feds spend almost $4 trillion each year …

April 6, 2017

Former Treasury official Peter Fisher once said, once said:

“The federal government is basically a gigantic insurance company  with a sideline business in national defense and homeland security.”

To that point …

According to a Pew recap of CBO data:

In fiscal year 2016, which ended this past Sept. 30, the federal government spent just under $4 trillion.

A about $2.7 trillion – more than two-thirds of the total – went for various kinds of social insurance (Social Security, Medicaid and Medicare, unemployment compensation, veterans benefits and the like).

Another $604 billion, or 15.3% of total spending, went for national defense.

Net interest payments on government debt was about $240 billion, or 6.1%.

Education aid and related social services were about $114 billion, or less than 3% of all federal spending.

Everything else – crop subsidies, space travel, highway repairs, national parks, foreign aid and much, much more – accounted for the remaining 6%.


A couple of things to think about …

–  Extending Medicaid to 12 million people cost about $60 billion … more than half of the total education budget.

Each 1% bump in interest rates costs about $200 billion annually on a $20 trillion debt …. “eventually” because it takes awhile for the debt to turn over.

Yep, a highly leverage insurance company with diminishing side businesses …



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Fed are raking in the dough … and still spending more than they get.

July 25, 2014

The WH-OMB estimates that, in FY 2014, the federal government will collect a record amount in inflation-adjusted tax revenues (i.e. taxes) while still running a deficit,

Source: CNS; See the Monthly Treasury Statement. for details


More specifically …


Nums: How much of the government is actually shut down?

October 7, 2013

Question: in a partial government shutdown, like the one underway at the moment, how much of the government is actually shut down, and how much is not?

Answer: About 17%.shut down; 83% up and running

Details below …


Based on estimates drawn from CBO and OMB data, 83 percent of government operations will continue.

This figure assumes that the government pays amounts due on appropriations obligated before the shutdown ($512 billion), spends $225 billion on exempted military and civilian personnel, pays entitlement benefits for those found eligible before the shutdown (about $2 trillion), and pays interest costs when due ($237 billion).

This is about 83 percent of projected 2014 spending of $3.6 trillion.” Source


And, let’s drill down on who actually got furloughed …


Want to know the difference between the private sector and the government?

February 27, 2013

Today, a couple of big Wall Street firms announced another round of cuts:

  • Citigroup plans to slash 11,000 jobs and close branches worldwide as part of a broad restructuring effort it hopes will save about $1.1 billion in expenses,
  • JPMorgan Chase became the latest Wall Street firm to scale back in an uncertain economy, announcing plans Tuesday to save $1 billion through various costs cuts and about 4,000 job reductions.
  • Goldman – which has already let 3,300 employees go worldwide in the past two years – announced another round of layoffs to cut costs by a cool billion dollars

OK, so 3 companies are cutting over $3 billion in expense.

No gnashing of teeth ,,, no “the sky is falling”

Just “times are tough … we’ve gotta do it.”

No so on the Sequester front … apparently the torch has officially been passed from the 12-21-12 Doomsday crowd to Team Obama …


Today was another day of .hysteria  … and silly rhetoric.

Allegedly, Obama said that – because of the Sequester – an already closed agency would have to be shuttered.

Say, what?

And, here’s the gem of the day …


$$$: The Federal budget on the head of a pin …

January 15, 2013

Nice recap courtesy of JP Morgan Wealth Management …

Easy facts to remember:

  • Feds take in about $2.5 trillion in taxes
  • Deficit is just over $1.1 trillion
  • Spending is over $3.6 trillion

Note that Social Security & Medicare spending is about twice what’s taken in via “Social Insurance” … aka. “payroll taxes”.

Also note how big that dashed Borrowing box is.

We don’t have a spending problem.

Yeah, right.


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Chart Tip: Being picky, but they should have put Social Insurance at the bottom of the sources’ stack so that it lined up with Social Security and Medicare.

Every list should have a logical order … and that order is rarely the order that you thought of things.

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