Monday, December 12, 2016

Deficit fast rising

Zero Hedge: As noted one month ago, the federal budget deficit has once again started to rise after years of marked decline. The deficit totaled $587.33 billion in the 2016 fiscal year that ended Sept. 30, or roughly 3.2% of gross domestic product. That was up from 2.5% of GDP in the prior year.
The Congressional Budget Office in August estimated that the deficit would be 3.1% of GDP in the 2017 fiscal year and rise over the next decade as spending growth outpaces revenues, reaching 4.6% of GDP in 2026. Alas, that number will be woefully low: the CBO’s baseline projection assumes no major changes to current law and continued modest economic growth. President-elect Donald Trump and congressional Republicans have signaled that overhauling the tax system will be a priority in the coming year, though the details and potential effects on the deficit and economic growth remain uncertain.
Ironically, the budget is blowing out before Trump even is inaugurated. Should the increase in deficits persist, Trump may not even have to unleash a major spending program, as Obama may have quietly done it for him.
So the Swampers send out McConnell to tamp down spending expectations:
Senate Majority Leader 
Mitch McConnell (R-Ky.) on Monday expressed some early skepticism about President-elect Donald Trump’s proposal to upgrade the nation’s crumbling roads, bridges and waterways.
During a press conference on Capitol Hill, McConnell warned against trying to pass a “trillion-dollar stimulus” through a Republican-controlled Congress.
“It will be interesting to see how this is put together,” McConnell told reporters. “I hope we avoid a trillion-dollar stimulus.”

They are trying to keep rates under 2.5 for the ten year. 

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