Total Federal Debt (TFD) stood was just over $9 trillion as of 9/30/2007 as compared to $8.45 trillion as of 9/30/2006. The increase in TFD – which most folks would call the General Fund Deficit (GFD) – was $556.3 billion for the year. (AB reader CoRev will likely go on another tirade since I did mention this term which he says cannot be used – but the heck with him). Of course, the water carriers for this Administration prefer to talk about the Unified Deficit (UD), which is the increase in the debt held by the public (DHP). That increase was only $220.3 billion BECAUSE intra-government holdings (IGH) of debt rose by a staggering $336 billion over the fiscal years. IGH is mainly that Social Security Trust Fund reserve that the White House wants you to believe doesn’t exist.
But here’s the thing. Since 2005, the reason that the unified deficit has been rising is NOT a declining General Fund Deficit but rather increases in those Trust Fund surpluses. That’s right – not only are the reserves rising but their rate of increase (the surplus) has been increasing. But then the White House water carriers don’t want you to know this. After all – there is no Trust Fund reserve and here at Angrybear, one of our readers says we are not allowed to talk about this staggering and continuing General Fund Deficit.
Update: Steven Pearlstein watched the GOP presidential debate so we don’t have to. Excellent writing. Cliff note version: none of them are serious about fiscal policy or economics in general.
Update II: CoRev says he cannot find this even though I’ve given him the link. CoRev says the total Federal debt cannot have passed $9 trillion even thought the U.S. Treasury says it has. I wonder if CoRev’s next excuse will be: (a) the Treasury is also a liar; or (b) the Treasury does not exist. My apologies to the rest of the AB readers who actually wish to make contributions in the comment box, but I’m really sick of CoRev’s false accusations. Aren’t you?