What "Austerity"?

Tyler Durden's picture

Sequesters; continuing resolutions; "spending brakes"; government shutdowns; fiscal restraint..... austerity.  For all the ceaseless talk about the "prudent", "responsible" action out of Congress, even if it is a result of the president-proposed, and Congress endorsed automatic spending cuts enacted as a result of the August 2011 debt ceiling fiasco, we have a minor problem identifying just where this so-called spending restraint is manifesting itself. Perhaps that is because we look at the facts, not the propaganda, or the empty rhetoric. Here as the facts: in the year to date period of the past four fiscal years, starting October 1 and going through the current day in March, the current year has seen the issuance of exactly $635 billion in Federal Debt, which as of Friday crossed the "psychological barrier" of $16.7 trillion. This is the second highest cumulative debt issuance in one fiscal year, surpassing both 2010 and 2011, and lower only compared to the $726.7 billion raked up in Fiscal 2012... just after President and Congress swore to cut back on spending following the US downgrade by S&P.

Incidentally, now that the US officially has no debt ceiling, and which despite all the endless bluster out of the GOP may be gone indefinitely, the US has managed to rake up $270 billion in debt in just over one month. 

Still think there is a difference between the "democrats" and the "republicans"?

Source: TreasuryDirect