Hoot of the Day: Biden Plans to Pay Down National Debt, Tackle Inflation

June 3, 2022

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5:14 pm

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84 comments

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Economics

Pay Down the Debt

US Pres. Biden: On Track To Reduce Deficit By $1.7 Tln
– Tsy Dept Planning To Pay Down National Debt This Quarter

— LiveSquawk (@LiveSquawk) June 3, 2022

Well Positioned to Overcome Inflation

BIDEN: WE ARE ON TRACK TO REDUCE DEFICIT BY $1.7 TRILLION

BIDEN: THE TREASURY DEPARTMENT PLANS TO PAY DOWN THE NATIONAL DEBT THIS QUARTER

BIDEN: THE US IS WELL POSITIONED TO OVERCOME INFLATION

— critical mix theory (@allidoismix) June 3, 2022

Planning to Pay Down National Debt This Quarter

If tax revenues for the quarter exceed spending for the quarter, it’s automatic.

Planning is irrelevant.

What About the Full Year?

On May 25, The New York Times reported The U.S. budget deficit is projected to fall to $1 trillion in 2022.

The United States is expected to record a $1 trillion budget shortfall this year, down from $2.7 trillion in 2021, marking a return to the economy’s prepandemic trajectory.

Let’s not confuse a declining deficit with actual debt repayment. The deficit is about $1 trillion.

Dear president Biden: It’s not possible to pay down debt while incurring deficit spending.

Moreover, the national debt will actually rise more than the deficit because accounting gimmicks understate the true deficit.

Flashback Hoot of the Day

*House Speaker Nancy Pelosi from YouTube video clip, annotations by Mish*

Here’s the flashback hoot of the day. On March 12, 2022, Nancy Pelosi said “Government Spending Reduces Debt”.

Well Positioned to Tackle Inflation

The price of oil rose another two percent today topping $119.

Unleaded gas futures hit a new record high. The price of gasoline will follow.

Feel Confident

BIDEN SAYS AMERICANS SHOULD FEEL CONFIDENT ABOUT THE ECONOMY

— *Walter Bloomberg (@DeItaone) June 3, 2022

Translation: “I desperately need you to keep spending.“

What a collective hoot.

Expect a Deep Recession to Start This Quarter or Early Third Quarter

Yesterday, I commented Expect a Deep Recession to Start This Quarter or Early Third Quarter

That triggered a silly discussion regarding June is the end of the quarter. Yes, that’s true but most key data is still from April.

The key number is retail sales. The most recent data is April. It was way stronger than expected. But is it believable?

For discussion, please see Is a Recession On the Way or Has it Already Started

Also see, Target Plunges 25%, What About Yesterday’s Big Retail Sales Blowout?

This post originated at MishTalk.Com

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Lisa_Hooker

3 years ago

I myself (in extreme conditions I might add) have unsuccessfully tried to extricate myself from a hole by grasping the short straps atop my cowboy boots and vigorously pulling upwards. It is soon obvious that this results only in wasted energy.

Ron Cataldi

3 years ago

-Inflation is global

-Unemployment is the lowest ever

-Demand for goods and services remains strong

-big backlog in demand… I need 2 new cars for family, but holding off… thousands or millions like me

-Another failed recession call will make how many? for this blog?

thomsoni

3 years ago

Enjoyed todays post Mish…we have the same problem in Canada….

Six000mileyear

3 years ago

I interpret “paying down the deficit” as printing more money.

ColoradoAccountant

3 years ago

When I went to high school, if someone got a new rifle they would bring it school and show it around in the parking lot. I am a Columbine parent, a freshman girl who spent 3 hours hiding under her desk while the Sheriff and his men stood around outside. Columbine was the first, even though guns had been around for hundreds of years. If you look at guns as the cause you are looking at the wrong thing.

PapaDave

3 years ago

Reply to ColoradoAccountant

Just curious. What is the reason for the seemingly never-ending mass shootings in the US?

And secondly, what can be done about it?

Serious questions. Interested in your response.

JRM

3 years ago

Reply to PapaDave

Mentally unstable people!!!

Who know if they carry out a school shooting the US MSM will mention their names and they will be glorified by the MSM!!!

Just wait until a mag fed bolt action rifle is used, then watch the MSM/Socialist/Marxist go after the hunting rifles next!!!!

PapaDave

3 years ago

Reply to JRM

Unsatisfactory and insufficient answer. There are mentally unstable people in all developed countries, yet they do not suffer mass shootings to the same degree as the US. I am looking for serious answers here. Try again.

Pontius

3 years ago

Reply to PapaDave

Every shooter has same profile – male under 25. Distorted reality from years of immersion in video games, parental neglect (few male role models) and schools that pass for minimum security prisons with abuse/harassment. Note, girls not addicted to violent video games (addicted to social media, another problem). Firm defender of 2nd Amendment but if sales to those (can’t just ban males) under 25 are delayed and require more thorough review? We need to change our culture/institutions.

PapaDave

3 years ago

Reply to Pontius

You are partially correct:

Experts have long cautioned that there is no single profile for a mass shooter. But the Violence Project researchers found some personal characteristics often align with certain types of locations targeted by shooters, and created five general categories:

K-12 shooters: White males, typically students or former students of the school, with a history of trauma. Most are suicidal, plan their crime extensively, and make others aware of their plans at some point before the shooting. They use multiple guns that they typically steal from a family member.

College and university shooters: Non-white males who are current students of the university, are suicidal, and have a history of violence and childhood trauma. They typically use legally obtained handguns and leave behind some sort of manifesto.

Workplace shooters: Fortysomething males without a specific racial profile. Most are employees of their targeted location, often a blue-collar job site, and have some grievance against the workplace. They use legally purchased handguns and assault rifles.

Place of worship shooters: White males in their 40s, typically motivated by hate or domestic violence that spills out into public. Their crimes typically involve little planning.

Shooters at a commercial location (such as a store or restaurant): White men in their 30s with a violent history and criminal record. They typically have no connection to the targeted location and use a single, legally obtained firearm. About a third show evidence of a “thought disorder,” a term for a mental health condition, like schizophrenia, that results in disorganized thinking, paranoia, or delusions.

From:

https://www.vice.com/amp/en/article/a35mya/nearly-all-mass-shooters-since-1966-have-had-four-things-in-common

How do you propose to change our institutions?

honestcreditguy

3 years ago

Reply to PapaDave

programmed sheep, social media vanity no matter dead or alive, they want fame even in death….its called vanity and violence in media….add a lockdown and this was 1 to 1 bet, even money this was going to happen

Lisa_Hooker

3 years ago

Reply to PapaDave

America has, by a wide margin, the highest percentage of first person shooter video game players, e.g. Call of Duty, Halo, &c. American media does a better job of promoting a mass shooter to evil cult status; you will become Nationally infamous.

What can be done? Waiting periods before delivery. Required training providing not only training but an opportunity for an experienced instructor to speak with and observe the student over a period of time.

But mostly fix the corrupted culture. Many Swiss citizens have automatic, not semi-automatic, weapons at home as a military reserve requirement, they don’t have this problem. Similar situation in Israel.

honestcreditguy

3 years ago

Reply to ColoradoAccountant

loss of command….no man stands around while someone is shooting kids…..go in and die….it happens to all of us

Casual_Observer2020

3 years ago

Reply to ColoradoAccountant

Columbine wasn’t the first.

The first K-12 mass shooting of the modern era occurred in 1989 in the schoolyard at the Cleveland Elementary School in Stockton, California. Five children — all of them Southeast Asian refugees — were killed. Thirty-two others were wounded. The attack led to California’s first assault weapons act.

Casual_Observer2020

3 years ago

Reply to ColoradoAccountant

And it isn’t guns but access to guns. Not the same thing. Limiting access and doing background checks would most definitely reduce it. No country has access to weapons like the US.

Felix_Mish

3 years ago

That the NYT found Biden’s $1.7 is interesting. That would, currently, be the job of the WSJ or NY Post or Babylon Bee.

Biden is talking like his party has just lost control of the House and the Presidency. How odd. The party in control of the H & P do not, repeat, do not talk about the national debt other than to say, “Pfft.” Their job is to direct as much money as they can to their important interests and people.

Serious national debt talk is solely the job of the party out of the driver’s seat.

Such are the unwritten rules of US politics. What is wrong with the Biden team that they don’t follow the rules?

Dr_Novaxx

3 years ago

Reply to Felix_Mish

I think a better question to ask is — “what isn’t wrong with the Biden team?”

SAKMAN1

3 years ago

Question. The national debt is just money? So. . . to pay it down, you just print money.

Global us debt market is: over 225T, yes?

So US Debt is less than 15% of that.

Inflation is already a problem and the Fed looks like it intends to create massive capital destruction. Why wouldnt Treasury just pay the debt down to offset the credit destruction and put more US into the global pool while the fed is pulling it out?

Then they can raise rates and destory asset values (i.e. where all the money is) even more to bring inflation (and economic activity) down without worrying about the national debt.

Help?

threeblindmice

3 years ago

In related news, Biden to announce cures for cancer and diabetes, a cold fusion device that delivers unlimited free energy, and a program to eliminate all crime (and makes everyone nice) by 2024.

Bam_Man

3 years ago

A soon-to-be-announced, key part of Biden’s inflation fighting program will be the launch of a nationwide initiative to develop automobiles and trucks that run on silver. “Pain at the gas pump” would be gone forever, since the price of silver never goes up.

RonJ

3 years ago

Translation: “I desperately need you to keep spending.“

After 9/11, bush Jr. told the American people to go out and shop.

hmk

3 years ago

Reply to RonJ

If not he can start another war like Bush Jr. Maybe WWlll will get things moving. He is rapidly heading in that direction

Counter

3 years ago

Did you notice crude futures jump when he mentioned clean?

Jmurr

3 years ago

It’s amazing how similar Biden and Trump are. Both are habitual liars, too old, too corrupt and too racist. We would all better if president was chosen by random numerator generator of all taxpayers.

Zardoz

3 years ago

Reply to Jmurr

They probably don’t even know they’re lying. They’re just relaying dispatches from SenilityLand.

threeblindmice

3 years ago

Reply to Jmurr

Buckley said it first.

Dr_Novaxx

3 years ago

Reply to Jmurr

Really Jmurr?

You can’t tell the difference between someone who protects your Constitutional rights and someone who’s trying to take them away?

And I suppose you would be a paragon of virtue and righteousness if you were in that position?

Why don’t you run for President and let’s see how this works out?

Carl_R

3 years ago

Reply to Dr_Novaxx

One wants to take away guns, the other wanted to take away the Republic. Both lead to the same place, and it’s not freedom.

Dr_Novaxx

3 years ago

Reply to Carl_R

Thanks for the comment. Please explain what you mean by “wanted to take away the Republic.”

Jmurr

3 years ago

Reply to Dr_Novaxx

I would never run for president. I have no desire to control people or steal their property.

Dr_Novaxx

3 years ago

Reply to Jmurr

Okay, thank you for elaborating! But can you please explain to me how U.S. presidents steal people’s property?

Carl_R

3 years ago

Reply to Jmurr

The best candidate in 2020 was Jorgensen. That, and 2 bits (er, 20 bits), will buy you a cup of coffee.

Anon1970

3 years ago

Less than 10 years after the German mark staged its final collapse in late 1923, the first German concentration camp opened in in Dachau. I wonder if the folks at the Simon Wiesenthal Center are at all worried about the rapid growth of the US national debt.

Tony Bennett

3 years ago

BIDEN: THE US IS WELL POSITIONED TO OVERCOME INFLATION

…

I’m not an expert on fuzzy math.

Can someone explain how canceling student loans drives down inflation?

Billy

3 years ago

This is a miracle. The politicians are finally admitting that we need to reduce the debt. If we don’t we will experience a major depression within 10 years.

If the debt continues to increase it will be worse than any world war, human influence on the environment, or terrorist attack.

These current discussions are telling us that they are aware of the problem.

Dr_Novaxx

3 years ago

Reply to Billy

I’ll take that as a small victory. They’re finally talking about debt again! Let’s not just talk but do something like:

1) admit the “War on Poverty” was a mistake & will never work, then

2) freeze all entitlement payments until the debt is paid off, then

3) hunker & bunker until the protests die down!

Tony Bennett

3 years ago

Reply to Billy

“The politicians are finally admitting that we need to reduce the debt.”

…

Admitting and Doing are two different animals.

They’ve paid lip service for years to no avail. The last – sort of serious – effort was in 2011 with Budget Control Act. Boehner talked of “needing to have an adult conversation” on cuts. Of course, he meant entitlements had to be cut, but did not want to say that publicly. When budget talks failed – and sequestration kicked in – that lasted all of one year before politicians decided they rather Spend Spend Spend than act responsibly.

Dr_Novaxx

3 years ago

Reply to Tony Bennett

Good history lesson there, and yes I remember that too unfortunately. I think the only way real debt action will happen is if we repeal the 17th Amendment (which would de-politicize the Senate) — that way they can act on unpopular things like this without fear of being voted out of office by the greedy schlepps. Does this make sense?

Zardoz

3 years ago

Reply to Billy

They ‘admit’ it every election cycle, when they blame their opponents for it.

Zardoz

3 years ago

Prediction: Biden deficits will be larger that trump deficits, that were larger than Obama deficits, that were larger than Bush deficits…

There won’t even be a second derivative reduction. It’s full speed till WWIII.

Tony Bennett

3 years ago

Reply to Zardoz

The country will revisit $3trillion deficit(s) soon … when recession hits.

Lisa_Hooker

3 years ago

Reply to Zardoz

Studies show that human beings have difficulty understanding exponential
growth. Exponential growth bias is the tendency to underestimate
compound growth processes. This bias can have financial implications as
well.

I believe the real issue is will we have exponential growth or hyperbolic growth of the debt. Hyperbolic will be much worse.

KidHorn

3 years ago

The last year the deficit shrank was 1957. Even though many presidents have claimed a surplus since then.

Carl_R

3 years ago

Reply to KidHorn

In many years, however, the total debt as a percentage of GDP fell. If we were still at 30%, where Carter left us, no one would be worried. 140% is a much more serious problem.

shamrock

3 years ago

The price of gas has gone parabolic, is it a bubble?

randocalrissian

3 years ago

Reply to shamrock

It’s more blimp-shaped, and starts with letter H

Zardoz

3 years ago

Reply to randocalrissian

What a hyperbolic statement!

Business Man

3 years ago

I am tired of the gaslighting. It is incredibly insulting that we have “leaders” who state obvious lies like this and expect us to nod our heads like idiots, mouth agape.

We must punish these people in November, and in the meantime ridicule them in every highly public way possible.

shamrock

3 years ago

Reply to Business Man

Who would you replace them with? There are nothing but liars on the ballot.

randocalrissian

3 years ago

Reply to shamrock

Replace them with Trump, he said he would pay down all public debt within his eight allotted years in OO.

Zardoz

3 years ago

Reply to randocalrissian

He lies enough to cover for all of them, and sues anybody that calls him on it… the ultimate politician.

JRM

3 years ago

Reply to Zardoz

What a blatant lie!!!

We all know you support the Marxist movement!!

Zardoz

3 years ago

Reply to JRM

You don’t even know what that word means.

I’d award you the Golden Kookie, but you aren’t a kook. You’re just an idiot with daddy issues, ripe for the scamming.

https://en.wikipedia.org/wiki/Veracity_of_statements_by_Donald_Trump

Bam_Man

3 years ago

Reply to shamrock

Sad but true.

Washington, DC is a cesspool of corruption and depravity. No decent person would want anything to do with it – thus we have only the worst of the worst in positions of power. It will end very badly.

ColoradoAccountant

3 years ago

Reply to Bam_Man

Use a lottery like the ancient Greeks did to select the Senate.

Lisa_Hooker

3 years ago

Reply to ColoradoAccountant

The smart talented people will find a way around that, same as they do with jury duty.

Carl_R

3 years ago

Reply to shamrock

Replace them with Libertarians. The liars gyrate to parties where they might get elected, so the Libertarian party holds no appeal to them. If they start winning some elections, however, that will change, unfortunately.

JRM

3 years ago

Reply to Carl_R

Have been infiltrated by the establishment!!!

Casual_Observer2020

3 years ago

Reply to Carl_R

Libertarians wouldn’t solve the issue either. They would be out of office in 2 4 or 6 years because there is no way 300M people would not kill each other under a libertarian economy.

Cocoa

3 years ago

Reply to Business Man

The big state governmenteers are very threatened by the voter sentiment against them-so I would expect a lot(A LOT) of cheating that will make 2020 look accountable. Its not about our rights anymore, it’s about them controlling and staying in power

Naphtali

3 years ago

Reply to Business Man

Always keep in mind the bell curve. Many are quite gullible and uncritical of what they hear. Lying does work.

Zardoz

3 years ago

Reply to Naphtali

Once you reshape their identity correctly, people will believe anything that bolsters it. Humans have terrible software.

Maximus_Minimus

3 years ago

Stop paying interest on national debt, and turning Pentagon into a private corporation, like the Federal Reserve, would go a long way.

Wait..Pentagon cannot be turned into anything like the FED, imagine the catastrophic consequences.

Casual_Observer2020

3 years ago

I have an easy way to resolve the problem of expensive housing. Basically ban renting of single family homes by levying an annual 100% property tax on the purchase price of the house if it is a an investment property or second home. If the home is purchased and also unoccupied and thus being used to launder money, the annual property tax should be 500% of the purchase price. Our politicians need to mean it when they say they want cheaper housing.

TexasTim65

3 years ago

Reply to Casual_Observer2020

So basically anyone who owns a cottage or vacation home gets hammered by this nonsense? That doesn’t make a lot of sense and would not get passed simply because there are millions of average Americans who own cottages, vacation homes, winter condos etc and they would all vote and make sure their local elected representatives know it.

BTW, all of the above homes types would be considered money laundering by your definition and yet none of them fall into that category.

KidHorn

3 years ago

Reply to TexasTim65

Not to mention I would guess the majority of congress owns second homes.

Zardoz

3 years ago

Reply to TexasTim65

We have more empty houses than homeless people. The current situation is an absurd failure of capitalism to serve the needs of the people that participated in it. If it’s not corrected, people will turn against capitalism, in self defense.

Civilization is a game. If players see no chance of winning, or even surviving, they’re gonna flip the table.

Dr_Novaxx

3 years ago

Reply to Zardoz

A failure of capitalism, huh? Oh, so after 10,000 years it suddenly doesn’t work anymore? Come on, man!

The failure is in government manipulation of capitalism. Free trade always works, always. it’s simply the “invisible hand” that allocates resources perfectly among buyers & sellers at market prices.

It’s only when government interferes with businesses such that they are not allowed to discover price equilibrium, that capitalism doesn’t work like it’s supposed to.

Stop drinking the Kool-Aid. Wake up & smell the coffee!

Zardoz

3 years ago

Reply to Dr_Novaxx

What civilization has lasted 10000 years without a board flip, under any monetary system or ideology?

Spit out the tide pod. Those aren’t for eating.

hmk

3 years ago

Reply to Dr_Novaxx

We are not operating under a free market capitalism economic system. It is basicaly an oligarchy or corrupt crony capitalism. We have the best government money can buy. Until we limit these corrupt aholes to one term only and elinimate all campaign contributions nothing will ever change. We are circling the drain.

Business Man

3 years ago

Reply to Zardoz

No. Poverty is a mindset. I know, because I came from an impoverished family. I saw all the things they did wrong and all the things that do not lead to success. But then my parents did a few things that kept a roof over our head and food on the table, even with entry level jobs for mom and a skilled trade for dad. They did not purchase anything they didn’t need, and did not get into debt. I rode on my first plane trip in 1995, when I was 21 years old. I have not stopped working since I was 15. I patiently went from working with my body, to my mind, to eventually my capital. This is how it is done.

So is it Capitalism, or work ethic and savings ethic? Is it that people won’t make sacrifices to obtain and keep steady, hard work?

As far as I can see, there are entry level jobs everywhere for the taking. Jobs paying $20/hr to start. For 40 hours a week you are talking $800. It’s a start. You start there and you build. If you are a good employee, most employers will throw money at you to stay (I am).

There is no reason to be homeless today, unless you are into drugs, alcohol or have mental illness. If you have those problems then there are support programs that are designed to help. If you do not avail yourselves of those programs, because you’d rather get high, don’t blame Capitalism. Blame our culture and the individuals who choose not to get help. I cannot fix them and neither will ANY economic or social system.

Blame yourself, because that’s where it starts. I have lived at the bottom, and the reason I am conservative is because conservative principles and capitalism work.

Karlmarx

3 years ago

Reply to Business Man

Well said!

Zardoz

3 years ago

Reply to Business Man

You weren’t poor. You were envious of others that had more.

The US is full of families built like an avalanche. Generations of scraping by on handouts and hustles, scuttling from eviction to grungy motel to cousin’s couch to shelter. If you’re born into a family like that, going to the horrific schools around them with the other kids that have family like that, how are you gonna learn otherwise?

Mental health and treatment programs have been cut to the bone ever since Regan emptied the asylums. Mentally ill people can’t make good decisions… that’s why they’re classified as mentally ill.

Naphtali

3 years ago

Reply to Business Man

There are some, due to no fault of their own, lack marketable talent with which to climb out of poverty. How do we guide them to some level of self-supporting achievement? I think it is possible, though difficult, by instilling self discipline and a strong work ethic as you point out. My parents did this for me. I was expected to work and contribute to the family. I started at eleven, am now seventy-two and still working. I find this common for those not far from recent emigration to this country. For all of it’s faults, the USA and the capitalist system offer the best opportunity that I know of.

Maximus_Minimus

3 years ago

Reply to Zardoz

I hate to agree with Zardoz, but only this once. I wanted to express the same idea, which is not mainstream, yet.

Someone posted a checklist of failure here, replete with monetary and fiscal failures.

I go back to Plato on just one point: allowing people to vote for goodies for themselves ultimately results in catastrophe.

Zardoz

3 years ago

Reply to Maximus_Minimus

Doesn’t seem like it’s the voters getting the goods though…

TexasTim65

3 years ago

Reply to Zardoz

You seem to be blaming capitalism for homeless people.

If there is a shortage of homes, it’s decidedly a government problem. As in too many regulations (building densities, build codes, inspections, material requirements and so on). Relax some of those and plenty of homes will get built. Yes, it may push up urban densities and be of marginal quality etc but they will get built because the price point will be right (cheap house = affordable for poor/homeless).

JRM

3 years ago

Reply to Zardoz

More proof you support MARXISM!!!

honestcreditguy

3 years ago

Reply to Zardoz

cuckoo, cuckoo

Esclaro

3 years ago

Reply to TexasTim65

Almost half the units in our condo complex in San Antonio are owned by Mexicans. The units sit empty doing their job parking the cash.

honestcreditguy

3 years ago

Reply to Casual_Observer2020

how about you admit that big business fixed housing….just like the libor…..

why are their so many sheep in america

PreCambrian

3 years ago

I agree that the comment by Biden that the US will start paying of the national debt makes about as much sense as Trump saying that the TCJA would pay for itself. Different ways of saying the same lie. If we didn’t have the Bush tax cuts we would probably be in good shape now (as long as other Republicans didn’t try to cut taxes and other Democrats try to increase spending).

Casual_Observer2020

3 years ago

https://www.yahoo.com/finance/m/f7b257b7-8b47-3b86-9494-e6316a111286/biden-adviser-u-s-still.html

Karlmarx

3 years ago

Reply to Casual_Observer2020

Wow – yet another lawyer pretending to be an economist. What a joke, this guy served as Economic Policy Director on the Elizabeth Warren 2020 presidential campaign. I doubt he can even do ling devision.

Hoot of the Day: Biden Plans to Pay Down National Debt, Tackle Inflation

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