Archive for the ‘Government budget & spending’ Category

Gov’t shutdown: A tree falling in the woods?

January 2, 2019

Seriously, do you care one way or another?
===========

Have noted some asynchronous behavior in the past week or two…

Cable news pundits lead most broadcasts with deep concern: “It’s day (insert number here) of the partial government shutdown and no end in sight.”

Clarification: On MSNBC and CNN, the word “partial” is replaced by “Trump”

image

But, holiday chit-chit among friends and family has taken a much different track…

============

On no occasion has the topic come up in the normal course of conversation.

If prompted, I’ve gotten responses ranging from “What government shutdown?” … to “I hope it stays closed.”

Only one instance of anybody being impacted: A government lawyer who was appreciative that she was getting an additional week or two of vacation … knowing full well that she’d eventually receive back pack for the time off.

While the MSM is positioning the stalemate as the greatest disaster since Katrina, it’s not evident to me that the public is buying into the hysteria.

Hmmm….

============

Follow on Twitter @KenHoma

>> Latest Posts

#HomaFiles

Alert: About the recent increase in interest rates…

December 21, 2018

Like most investors, I’ve started paying closer attention to interest rates.

The initial motivation: came this summer via my trusty mortgage ARM — which hovered around 3% for a decade or so — jumped to 4% last year and is being reset to 5% this year.

Ouch.

Now, with the Fed “normalizing” interest rates, i.e. jacking rates up, I’m on full alert.


Source

==============

All of this got me wondering about the impact of rising rates on the Federal budget…

(more…)

About the recent spike in interest rates…

August 14, 2018

I’ve started paying closer attention to interest rates.

The motivation: my trusty mortgage ARM — which hovered around 3% for a decade or so — jumped to 4% last year and is being reset to 5% this year.

Ouch.

image

==============

That got me wondering about the the impact of rising rates on the Federal budget…

(more…)

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%.

image

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 …

=========

#HomaFiles

Follow on Twitter @KenHoma            >> Latest Posts

=========