Thursday, February 23, 2012

No austerity here: Fed'l government spending surging this month!



Real net spending (total outlays adjusted for public debt redemptions) is rising at the fastest month-over-month pace in over a year. It looks like this is due to the Social Security pay increase that went into effect as well as interest payments on the debt, which although interest rates are lower, the total amount of debt outstanding is higher.

The sharp increase in real spending is what's behind the economy's strong numbers recently. That and a big rise in new loans.


9 comments:

Anonymous said...

All just in time for the election?! :D

Anonymous said...

Just in time for the election? Better late than never, my fellow anonymousian.

Bob said...

Mike a big fan of yours and someone whom I follow has been saying this samething now for quite awhile, his name Dan Frishberg. I will pass this on to him, to support what he has been saying. More money coming into system. Now I know why I follow you Mike , you know your stuff!

Mike Norman said...

Bob,

Dan always followed me. He once even admitted it, and followed up by saying he never gave me credit for the stuff he took from me!

Bob said...

Mike,

I will always follow you and I thank Dan F for his radio show where I had the good fortune to run across paths with your insights. You are correct Dan F has said to his audience in meetings I have attended that you have a special talent to see the data. Sorry if I implied that you were following him, of course that is not the case. Keep putting out the good information and fighting the good fight!.

reslez said...

Is it possible outlays have increased because federal tax receipts have plummeted due to an incipient contraction?

Mike Norman said...

Tax receipts are actually running higher than last year. Total spending year-over-year is down by $300 bln. It's just been this month--February--that spending suddenly surged. And it could be due to the fact that the debt ceiling left the gov't behind on payments in January. We're making up for it this month. We'll see how spending looks in March.

Mike Norman said...

Thanks, Bob!

Anonymous said...

hi Mike,

Where do you get this data?