Once again, it’s time to look at the state of the Federal budget, and get our heads around how well—or badly—we’re doing as a republic. The short answer is…not well. Let’s take a look at a simple chart of the last full year of federal spending and receipts, which is Fiscal Year 2012. The chart is clickable, so you can see a full-sized version.
We spent $3,795.55 billion, while taking in $2,469 billion in taxes and receipts. That gave us a deficit for the year of $1.326.55 billion.
Much of the spending is required by law. Mandatory spending includes Social Security, Medicare, Medicaid, and retirement benefits for the military and federal workers. In addition, interest on the national debt of $227.73 billion must also be paid, by law. Overall, $2543.51 billion in spending was legally required. That’s 67% of all federal spending.
Keen observers will note that revenues of $2,469 billion do not cover that amount of mandatory spending. So, we missed being able to pay for required spending alone by by $74.51 billion. Essentially, we borrowed money to pay one-third of the interest on the money we’ve already borrowed.
Actually, we’re pretty lucky when it comes to the whole interest payments deal, because the average interest rate on the debt is hovering at around 2%. Every additional percentage point in that interest rate translates to about $115 billion dollars in additional interest charges every year. If interest rates were to rise to the historical average of 6%, that would add about $575 billion per year to cost of servicing the debt. That would raise the annual debt service costs from $228 billion to $803 billion. That’s about $44 billion more than we currently pay for defense. So, let’s hope for a weak, struggling economy, right? Gotta keep those interest rates at historical lows.
Anyway, the remaining spending is all discretionary, so, we chose to spend another $1,252.53 billion in discretionary spending. $759.11 billion was spent on killing foreigners. Everything else the Federal Government does—all of the executive departments, science and medical research, the Judicial branch, and giving money to heathen foreigners to try and make them our friends—cost us $492.42 billion. Giving money to the heathen foreigners—also known as foreign aid—accounted for about $38 billion for the year, or 1% of federal spending.
So, what can we extrapolate about the future? Well, we know that, even in interest rates stay steady, mandatory spending on entitlements will rise as the huge population bolus that is the Baby Boom generation begin retiring. Without either significant new taxes and/or significant entitlement cuts, re. That means that, in the not-too-distant future, revenues will not cover even the cost of mandatory entitlement spending.
We can—and probably will—ameliorate this by slashing defense. It’s what the Europeans have done, after all. There’s this huge chunk of money that goes to defense, and it gives us a defense budget larger than the defense budgets of the next 19 largest nations combined. Obviously, we will be told, we’re acting like a bunch of paranoid maniacs, so we can cut defense by at least half, and still have a huge defense establishment in world terms. So, we got that going for us.
So, that’s the situation for FY 2012. In a couple of months, we’ll get a final accounting of FY 2013, and we’ll see where we stand. Revenues were significantly higher in 2013, and spending growth doesn’t appear to have kept pace, so the deficit probably fell to somewhere in the vicinity of $800 billion.
That’s progress, I guess, though one year does not make a trend. Let’s see how much Obamacare is gonna cost us next year, assuming it isn’t delayed because of all the fail.
Anyway, please feel free to show this spending chart to your ignorant friends.
More on this subject found at Questions and Observations.
Obama Acts Like A Spoiled Child? Blame the Left.
Recently, black Conservative author and radio host Kevin Jackson posted a blog titled “America Needs a White Republican President.” Not surprisingly, the Liberal media went absolutely apoplectic over the title – never bothering to read the premise of the article, or even note it was written not by some white “bitter clinger” but by a black man.
Jackson’s point was that if we had a white Republican male president, the country would be free to criticize his policies without being labeled “racist.” Lowering standards or making excuses for blacks, other minority groups – or women for that matter – is the most insidious form of racism or sexism. And yet, this is what the liberal Left continues to do.
Read more of Jackson’s commentary about why it’s no surprise the President acts like a spoiled child. He’s being treated like one. Actions should have consequences. Elections certainly do.
Stemming from fear that autonomous robots could embark on a campaign of indiscriminate killing, some have called for a global moratorium on ‘lethal autonomous robotics.’ In fact, there is a convincing base of evidence that robots are more likely to prevent slaughter than engage in it.
Atlas is an anthropomorphic robot designed to operate on rough terrain. The video shows Atlas balancing as it walks on rocky terrain and when pushed from the side. The balance and control system places the feet and swings the arms and upper body to stay upright. The controller uses inertial, kinematic and load data from Atlas’s sensors. Atlas is being developed by Boston Dynamics with funding from DARPA’s M3 program. For more information visit www.BostonDynamics.com
Read all of this HERE.
Go on set as Victoria’s Secret Angel Candice Swanepoel gets to see and try on the Royal Fantasy Bra for the very first time. Look for Candice and the $10 million bra, designed exclusively for Victoria’s Secret by Mouawad, on the runway of the 2013 Victoria’s Secret Fashion Show. The show airs Tuesday, December 10, 10/9C, on CBS.
Obama’s Amerika – Darkness falls on the Shining City (IFL S2E13)
Much more HERE.
In case you noticed, this blog was down for a little over a day. Blog was moved to new server and it just took a bit for the new DNS to propagate.