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

Let's discuss amusing plans from President Biden on the national debt, inflation, and strength of the economy.
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Unleaded gasoline futures courtesy of Trading Economics

Unleaded gasoline futures courtesy of Trading Economics

Pay Down the Debt

Well Positioned to Overcome Inflation

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

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

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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

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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