The New Found Purity In Control Over Spending

Posted at 11:09 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Before interpolating the announcement on the US Federal Deficit to gold please read carefully how this has occurred and then recognize the numbers do not show a new found purity in control over spending.

Further clarity on these figures will be forthcoming today from Mr. Williams at shadowstats.com.

The entire story will unfold in the US dollar market and nowhere else. There was no 20 second market stop trading in the US dollar as there was in the paper gold market.

Demand for gold over here in Asia continues at high levels with deliveries coming into private storage, and Freeport storage at increasing and equally attention grabbing rates.

Government slow down and shut down over deficit arguments and debt ceiling have a significant impact on the present and projected Balance of spending and receipt of income from taxation and other sources.

The USA will determine the further of the gold price and not the games played in pure paper which has little to do in the long term with the global flow hard bullion.

Congratulations, America! Your deficit fell 37 percent in 2013.
By Neil Irwin, Published: October 31 at 9:30 am

The federal government’s 2013 fiscal year ended Sept. 30, though most of us were so busy focusing on the government shutdown that accompanied the new fiscal year that there wasn’t much time to reflect on the year that had passed.

Now the Treasury and Office of Management and Budget is out with the final budget results. Surprise! The deficit fell quite a bit in 2013. The federal government took in $680 billion less revenue than it spent, or about 4.1 percent of gross domestic product. In 2012, those numbers were $1.087 trillion and 6.8 percent of GDP. That means the deficit fell a whopping 37 percent in one year.

This is the first sub-$1 trillion and sub-5 percent of GDP deficit since the 2008 fiscal year, which ended the very month that Lehman Brothers fell and a deep crisis set in.

What’s behind it?

Most of all, there was more revenue. Government receipts totaled $2.774 trillion, up $325 billion from 2012, and rising to 16.7 percent of GDP from 15.2 percent. That reflects in part a stronger economy that increased income and payroll taxes. It also includes the expiration of a payroll tax holiday that increased tax receipts, and higher rates for upper-income Americans agreed to for this calendar year.

There was less spending, amid the drawdown of U.S. involvement in Afghanistan, lower unemployment insurance benefits due to an improving economy, and the enactment government enacted budget cuts called for in the 2011 debt ceiling deal, including the sequestration automatic spending cuts that began in March. Overall outlays were $3.454 trillion, the treasury said, falling $84 billion compared with the 2012 fiscal year. That fall moves government outlays from 22 percent of GDP to 20.8 percent.

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