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Source link: http://archive.mises.org/11307/the-deficit-is-mind-boggling/

The Deficit is Mind Boggling

December 23, 2009 by

{ 13 comments }

Aaron Forgue December 23, 2009 at 11:18 am

Bubble… Recession… Bubble… Recession…

Those crazy Austrians might just be on to something here…

Joseph O. December 23, 2009 at 12:26 pm

I am sure they still aren’t enough for the Krug monster!

Walt D. December 23, 2009 at 12:37 pm

It looks even worse if you use GAAP instead of Congressional Rigged Accounting Principles (CRAP) numbers. The annual GAAP deficit is closer to $9 trillion. This used to be a large amount of money! Even the CRAP numbers are so bad that the Treasury has delayed publication for 2 months. The difference between GAAP and CRAP is that GAAP includes unfunded future liabilities.

DavidC December 23, 2009 at 1:20 pm

Looks like that nosedive started just about when the democrats took over congress

Keith December 23, 2009 at 2:46 pm

DavidC: Looks like that nosedive started just about when the democrats took over congress

Yes, because obviously King George Bush II was such a spendthrift miser that didn’t wage expensive wars and bail out politically connected companies and– Oh, wait.

Mike D. December 23, 2009 at 2:49 pm

Walt is right. However, even on a cash basis they are in trouble. Besides the reckless overspending on the expense side, tax revenues have been down on the revenue side. They can lie all they like about unemployment, but the unemployed pay no taxes and their employers pay no social security taxes. It is a lot more difficult to hide and lie about drops in tax revenue. Also, many people who lost their jobs are opting for early retirement. The Congress used to raid the Social Security Trust fund and not have to report it on a cash basis. Now there is no surplus left to steal.

Michael Barnett December 23, 2009 at 3:28 pm

Even if the deficit were $0, the amount of money the fed government is spending is astronomical. How long before the budget is $10 Trillion? 2015? Sooner? What are Americans getting for that?

Namego Eshere December 23, 2009 at 4:26 pm

when will this end so I can stop dreading the future?

Matthew December 23, 2009 at 5:43 pm

The future isn’t so dreadful once you’ve returned to a personal gold standard. Stop using their fiat as much as you possibly can and you shield yourself and your loved ones from most of their destruction.

George December 23, 2009 at 8:04 pm

What’s worse is that chart of the “deficit” is incorrect as the US Treasury debt never went down.

See http://www.usgovernmentspending.com and select a “federal debt chart” from say 1950 to now. (There are likely other sites with similar information). Don’t be confused by debt vs GDP or other measure, just look at total US Treasury debt. There isn’t any dip around 2000.

DavidC December 24, 2009 at 9:03 am

“Yes, because obviously King George Bush II was such a spendthrift miser that didn’t wage expensive wars and bail out politically connected companies and– Oh, wait.”

I don’t remember saying anything about King George. In any case, I agree. I just always thought that Congress controlled the purse strings. I think everyone who frequents this site can agree that the two parties are roughly the same in terms of their proclivity to spend, its just that one party seems to love to spend even more than the other.

Vote for Peter Schiff if you live in CT.

Brad December 24, 2009 at 9:58 am

Fiat money and inflation are used so that people can be enslaved without knowing they are being so. All the chart really tells me as that the days of soft “house slavery” is coming to an end the brutality of field slavery is on its way. It doesn’t take a genius to conclude that the Masters are drawing the conclusion that they have been too soft on us. No more smoke and mirrors, we’re on the way to the real thing nice and hard.

John December 24, 2009 at 11:37 am

Except this includes surplus income from social security, medicare and medicaid taxes. The only reason it ever pop’s above zero is SS was running surpluses at those times.

The government’s real budget has never had a surplus

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