Failed Projections Or Just Another Government Lie? You Judge!

Zerohedge ^ | 06/17/2013 | Tyler Durden

[Rusty0604]

Not so long ago, the Congressional Budget Office (CBO) said it expected the U.S. government to register a budget deficit in the current fiscal year of $642 billion.

But hold on a minute…

The budget deficit so far (as of May 31, 2013) has already hit $626.3 billion, and we still have four more months to go in the government’s current fiscal year!

[Rusty0604]

I recall some Democrats touting Obama's deficit reduction and am looking forward to their opinion on these numbers.

[Diogenesis]

Accountability requires they pay back their salaries
(triple, if fraud is a component), sell their homes,
and end their pensions and health insurance.

[Salgak]

Pay back their salaries AND all income earned after elected. . . .

[circlecity]

"The budget deficit so far (as of May 31, 2013) has already hit $626.3 billion, and we still have four more months to go in the government’s current fiscal year!"

This should put the year's deficit at just about a trillion dollars.

[streetsmart]

The budget deficit so far (as of May 31, 2013) has already hit $626.3 billion, and we still have four more months to go in the government’s current fiscal year!”
This should put the years deficit at just about a trillion dollars.

Yes and don,t forget they are going to stop paying union government pention payments to get under 1 trillion. Of course as soon as new budget is agreed to, they will pay back all back payments.

[hattend]

This should put the year's deficit at just about a trillion dollars.

As far as the eye can see into the future, as well.

[BfloGuy]

This is the first report I’ve seen in a long time that shows increasing consumer spending in the U.S. economy.

It means nothing.

Only business investment creates economic growth.

Consumers can spend till hell won't have it, but if entrepreneurs sit on their capital because of fears of future economic conditions, there will be no true economic growth.

It is a Keynesian fallacy that consumer spending drives economic growth. No one ever got a job from Joe Sixpack buying a new refrigerator.

The decision to buy a consumer good and the decision to invest in business expansion are entirely different.

John Stuart Mill:

We pass now to a fourth fundamental theorem respecting Capital, which is, perhaps, oftener overlooked or misconceived than even any of the foregoing. What supports and employs productive labor, is the capital expended in setting it to work, and not the demand for labour. The demand for commodities is not demand for labour. The demand for commodities determines in what particular branch of production the labour and capital shall be employed; it determines the direction of the labour; but not the more or less of the labour itself, or of the maintenance or payment of the labour. These depend on the amount of the capital, or other funds directly devoted to the sustenance and remuneration of labour....

Keynes got it wrong and now virtually the entire civilized world agrees with him. But robbing businesses of capital through taxation only to redistribute it to consumers is as senseless as believing that a thief who steals $100 from the corner deli only to spend it there on groceries the next week has increased the grocer's fortune.

/rant