We are going over a cliff. Democrats are pushing on the speed pedal. Republicans just want to glide over…
In a historical turn of events, the Biden administration has just overseen the largest November budget deficit in the nation’s history, despite a 9% increase in government receipts. According to the Monthly Treasury Statement, the November budget shortfall reached an astonishing $314.01 billion, marking a 26% surge compared to the deficit recorded in November 2022. A mere two months into fiscal 2024, the federal government finds itself grappling with a staggering $380.58 billion in red ink, following closely on the heels of the third-largest annual budget deficit in history.
“The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month” David Gondek
On the revenue front, the US government witnessed a notable uptick, raking in $274.83 billion in November. This represented a significant rise from the $252.11 billion recorded in the same month in 2022, defying the trend of generally declining government receipts. Despite this positive shift, concerns loom large over the spending side of the ledger.
The Biden administration’s expenditures surged to $588.84 billion in November, an 18% increase from November 2022. This brought the total spending for the first two months of fiscal 2024 to nearly $1.06 trillion, underscoring a fundamental issue—the US government spends excessively. Despite claims of spending cuts, the debt ceiling deal failed to address the core problem, and with the new plan in place, spending is poised to escalate. Government spending is already at historically high levels, ensuring that substantial budget deficits persist, contributing to the relentless growth of the national debt.
The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month and the highest since March, driven by sharply higher interest costs.
Everyone refinanced their debt except the U.S. Treasury. pic.twitter.com/WyuvmCOGPx
— Michael Burry Stock Tracker ♟ (@burrytracker) December 14, 2023
The national debt, having breached the $33 trillion mark on September 15, has continued to mount, reaching $33.85 trillion as of December 12. While some may downplay the significance of excessive spending, mounting deficits, and soaring national debt, Moody’s Investor Service took notice last month. It downgraded its outlook on the US government credit from “stable” to “negative,” possibly foreshadowing a downgrade in the country’s AAA credit rating.
"The U.S. federal budget deficit jumped 26% in November from a year earlier to $314 billion, a record for the month and the highest since March, the Treasury Department said."
Trending in the wrong direction.https://t.co/By78QWYHkZ
— Rep. David Schweikert (@RepDavid) December 14, 2023
Compounding the issue is the escalating national debt amid a period of rising interest rates. The US government heavily relies on borrowing to meet its financial obligations, and the Federal Reserve’s acknowledgment of inflation reflects the challenges posed by this scenario. In November, Uncle Sam incurred $79.92 billion in interest expenses to service the national debt, surpassing expenditures in national defense ($70 billion) and Medicare ($79 billion). Only Social Security ranked higher in spending.
Many cities drowning in debt trying to take care of Millions of illegals, Taxpayer are footing the bill The Biden administration just ran the largest November budget deficit in history. , Under Trump secure border, more $$, Less Crime, more world peace, Gene Pringle
Notably, the rapid increase in the national debt occurs against the backdrop of surging interest rates. With the Federal Reserve embarking on a hiking cycle, the government faces the predicament of replacing low-yielding debt with bonds carrying much higher interest rates. The weighted average interest rate on the government’s outstanding Treasury securities rose to 3.10% in November, compared to 2.22% in the same month in 2022.
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Financial analyst Jim Grant anticipates a prolonged bear market in bonds, suggesting that interest rates will remain elevated for decades, irrespective of Federal Reserve actions. Consequently, interest payments, which already account for over a third of total tax receipts, are poised to surge unless rates recede.
In essence, the fiscal conundrum calls for substantial spending cuts as a way out of the looming crisis. However, the likelihood of such cuts materializing remains uncertain, leaving the nation entangled in a fiscal dilemma with no immediate resolution in sight.
Fed admits the American people are right: the economy sucks, with 70% of Americans under age 44 now stressed about their economic future.
An entire generation is missing their prime building years, stitching together Doordash gigs instead of building a foundation to buy a… pic.twitter.com/X2KthcbGxg
— Peter St Onge, Ph.D. (@profstonge) December 14, 2023
Major Points Discussed:
- Largest November budget deficit in US history: Despite a 9% increase in government receipts, the November budget shortfall reached a record $314.01 billion, marking a 26% surge from the previous year.
- Escalating national debt: Just two months into fiscal 2024, the federal government has accumulated $380.58 billion in red ink, following the third-largest annual budget deficit. The national debt has surpassed $33 trillion, raising concerns about its impact on the economy.
- Revenue increase amid declining trend: The US government bucked the trend of declining government receipts by collecting $274.83 billion in November, up from $252.11 billion in the same month in 2022.
- Excessive spending remains a concern: The Biden administration’s spending surged to $588.84 billion in November, an 18% increase from the previous year. This has brought the total spending for the first two months of fiscal 2024 to nearly $1.06 trillion, highlighting a fundamental issue of excessive government spending.
- Interest expense challenge: The national debt’s rapid increase is occurring amid rising interest rates, posing a challenge for a government heavily reliant on borrowing. Interest payments in November exceeded expenditures in national defense and Medicare, signaling potential fiscal difficulties ahead. Financial analysts anticipate a prolonged bear market in bonds, making significant spending cuts imperative to avoid a fiscal crisis.
William James Butler III, freelance writer for Whatfinger News
Comments – Threads – Links
- Remember when we were shocked by a $1 trillion budget deficit in the USA? It was just a few years ago. Now we are running $2 trillion to $3 trillion deficits with the US govt borrowing $750 billion every 3 months currently. Sovereign debt is swallowing the world and the USA is doing it also, along with China and many other countries. Anyone thing this is going to have a happy ending? – Wall Street Silver
- Biden Administration Runs Record November Budget Deficit – 26% higher than the November 2022 deficit. | SchiffGold – DeJesus
- The Biden administration recently marked a historic milestone with the largest November budget deficit on record, despite a 9% increase in government receipts. Here’s the breakdown – Arman Abdul Rahman
- Joe Biden is New Record Holder The Biden administration just ran the largest November budget deficit in history. Even though ~ The US government took in $274.83 billion in revenue. Up from $252.11 billion in November 2022…- Lawyerforlaws
- US Budget Deficit Up 26% November’s numbers indicate a worsening trend in US economy. November deficit comes in at 314 billion USD beating out estimates of just over 301 billion, this according to Reuters. – Claudio Zao
- “The Biden administration just ran the largest November budget deficit in history.” Republican primaries are coming, so be sure to replace the Congressional Republicans who enabled this. There was and is no substitute for a government shutdown to force spending reductions. There is no other way out of our financial death spiral. – James Buchal