So while cutting the budget today by 6.5 billion dollars, congress increased the deficit by 72 billion dollars.
The national debt jumped by $72 billion on Tuesday even as the Republican-led U.S. House of Representatives passed a continuing resolution to fund the government for just three weeks that will cut $6 billion from government spending.
Only our government could increase the national debt while claiming they were cutting back. The fun doesn’t stop there though because it ends up the Federal Revenue no longer covers the mandatory spending for required government functions.
The White House Office of Management and Budget projects that in the current fiscal year (2011), mandatory spending alone will exceed all federal receipts. So even if we didn’t spend a single cent on discretionary programs, we still wouldn’t be able to balance our budget this year — let alone pay off any of the $14 trillion in debt that we have already accumulated.
Joe had a great example the other day regarding the current finical situation. At this point the government couldn’t save money even if it wanted to. Even then it would require serious cuts including getting rid of unnecessary jobs, social programs, and other things that really aren’t the role of government.
While some are vehemently objecting, others will be upset that what was promised them is no longer possible, and it will require that people return to being productive. Will it be painful, will many be upset they lost money “promised” them you bet. However you can’t get money for nothing and with how things are going the only solution is going to be to print the money to pay off the debts. This will weaken the value of the currency and people will be paid their due with cash that is worthless.
The government is still running flat out ignoring the fact that a mile down the road the bridge is out. You have city councils giving themselves pay raises. You have public employee unions working to continue and increase their burden on the public. Then you have congress who are cutting back their budget while actually spending even more.
If you haven’t started thinking about how you’re going to survive the coming economic collapse, you might want to seriously start thinking about it. This is unsustainable and it appears our elected officials are actually trying to ensure this crisis occurs.