Breitbart Business Digest reports…
Remember When the Deficit Mattered?
The (more-or-less) nonpartisan Congressional Budget Office (CBO) upwardly altered their projection for this year’s federal budget deficit by $400 billion on Tuesday. This brings the deficit forecast to $1.92 trillion for the year and marks a 27 percent increase compared to the CBO’s original estimate from the beginning of the year.
The major drivers of the shift, according to the report, are military aid to places like Ukraine and Israel as well as domestic spending on student loan forgiveness and Medicaid and the federal government’s failure to recover payments from last year’s banking crisis.
The Associated Press described the role that the handout to overeducated liberals played in the deficit increase using Orwellian language: “reducing student loan borrower balances.”
(For those of you with mortgages or credit card debt, try asking your lender to simply “reduce your balances.” Tell them it’ll be good for the economy. And please let us know how that goes.)
None of this data should be too surprising considering that everything Joe Biden touches gets more expensive. Biden is notoriously horrible with money, both personally and with your tax dollars, and he seemingly can’t resist a single opportunity to spend as much of your money as he can get his hands on.
That said, $400 billion is a big chunk of change.
How long can this go on?
Actually, for quite some time, in our view.
As I’ve written, in Breaking Biden and on these pages, no major voting bloc in America seems to care about large deficits. Since Obama/Biden beat Romney/Ryan in 2008, the year the debt clock hung from the rafters at the Republican National Convention, fiscal responsibility has been a political loser. It’s unlikely to be a big factor in the 2024 election because both candidates ran big balances. In fact, the voices of debt hawks are seemingly irrelevant in both major political parties, particularly the one in power.
If you want evidence that few Americans seem to care about any of this, take a look at most front pages across the news landscape today, especially establishment media outlets. You’ll see far more coverage of Justin Timberlake’s DWI in the Hamptons (what a jerk!), Nvidia’s ascension to “largest company in the world” status (the magnificent one!), and Joe Biden spacing out at his record-breaking fundraiser over the weekend (he’s old… and stupid!).
Biden’s Last Best Hope
What’s more, the deficit wasn’t the only startling piece of data released today. The Commerce Department reported that U.S. retail sales data for May came in at a mere 0.1 percent increase, and April’s sales were revised downward to -0.2 percent. This shows that despite the insistence of some in establishment media and the Biden campaign, Americans are feeling the pain. (Wasn’t rising household debt and delinquencies a clear-cut indicator? Apparently not for partisan hacks.) All of this is a sign of deepening consumer strain.
All of this bodes poorly for the current administration, politically speaking. So, expect Biden to play the only card he’s got in the deck: triple down and enact more inflationary policies. Biden’s only hope to give the economy a jolt in the few remaining months before people go to polls is to use the government coffers to alleviate some of the pressure on American families. How he does that is yet unknown to us, but expect him to try.
Biden World is, of course, praying that inflation somehow slows down enough for the Fed to cut rates in time for it to make a difference in the 2024 election. That seems highly unlikely at this point, but we at the Breitbart Business Digest will remain vigilant on that front and will keep you updated, constantly.
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