Peter's Blog

Spending Us Into Oblivion: Federal Budget Deficit Tops $1 Trillion in 2019 Calendar Year

The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued […]

Peak Irony: Fed Paper Admits Fed Policy Can Lead to Economic Ruin

A paper  by Scott A. Wolla and Kaitlyn Frerking for the Federal Reserve Bank of St. Louis warns that the Fed’s own policy could lead to “economic ruin.” The paper titled “Making Sense of National Debt” explains the pros and cons of national borrowing in typical Keynesian fashion. In a nutshell, a little debt is […]

Peter Schiff: It’s the Fed’s Fault!

Jerome Powell lectured Congress about the national debt last week, calling it unsustainable. The Federal Reserve chairman is concerned. He admitted that with interest rates already close to zero, the central bank has very little room to cut rates in the event of an economic downturn. Peter Schiff appeared on the Claman Countdown, along with […]

J. Powell Goes to Congress: SchiffGold Friday Gold Wrap Nov. 15, 2019

There was more optimism about a trade deal this week. There was also more pessimism about a trade deal this week. Markets reacted accordingly. But there was some other interesting news out there. Jerome Powell lectured Congress about the national debt and last month’s inflation data came in hotter than expected. Host Mike Maharrey covers […]

The Federal Government Spending Is Even Worse Than Advertised

Uncle Sam is spending money far faster than he’s taking in. The US federal government ran the biggest budget deficit in seven years in fiscal 2019, according to the Treasury Department. And the spending is even worse than advertised. The $984 billion deficit amounts to 4.7 percent of GDP. That’s the highest percentage since 2012. […]

2019 Federal Budget Deficit Was the Biggest in Seven Years

When is a $984 billion budget deficit good news? When you thought you might get a $1 trillion budget deficit. The Treasury Department released the fiscal year 2019 budget numbers on Friday. The budget shortfall came in at $984 billion right on the CBO estimate. A CNBC report said this would likely, “come as a […]

National Debt Climbs Over $800 Billion in Just Two Months

The US national debt increased by a staggering $814 billion between Aug. 1 and Oct. 6, according to Treasury Department data. That represents a 4% increase in the debt — in just a little over two months.

That Seems Less Than Ideal: SchiffGold Friday Gold Wrap Oct. 18, 2019

News of a possible “phase 1 trade deal” and movement toward a resolution of the Brexit fiasco have buoyed stocks and put a lid on silver and gold this week. But positive vibes on these two fronts overshadowed a lot of economic data that came out this week that was less than ideal. It seems […]

Is the National Debt Really Just Money We Owe to Ourselves?

The national debt continues to spiral upward. It increased by another $1.2 trillion in fiscal year 2019. But Paul Krugman says it’s not that big of a deal. He downplayed the national debt in a tweet, claiming emphatically that “DEBT IS MONEY WE OWE TO OURSELVES.” This encapsulates a common Keynesian argument. Debt can’t really burden […]

CBO Estimates FY2019 Federal Budget Deficit Was Just A Hair Under $1 Trillion

The budget deficit for fiscal year 2019 came in just a hair under $1 trillion according to the Congressional Budget Office estimate. Even if it does come in under the trillion-dollar mark, it would still rank as biggest deficit since 2012. The budget shortfall has only eclipsed $1 trillion four times, all during the aftermath of […]