Recent data from the Treasury Department, Office of Management and Budget and the Saint Louis Federal Reserve Bank shows that the Federal deficit has expanded briskly in the post crisis period since 2007, no surprises there as it approaches 20 trillion. What is surprising is that the deficits regularly trail the sums borrowed each year as it would appear that vast sums are disappearing based on data from the previously mentioned entities. In fact, since 2003 the government has borrowed some 4 trillion more than it says it spent. Even the surplus years from 1998-2001 saw the government continue to borrow and increase its debt levels according to the Office of Management and Budget. Another oddity, In Fiscal 2016, the government ran a deficit of $590 billion, per the latest estimate of the Office of Management and Budget. Last year, the deficit was $438 billion. So combined over $1.0 trillion. But it borrowed an additional $1.7 trillion to pay for 1.0 trillion in deficit spending. What happened to the $700 billion that it borrowed and that were not officially spent? Variations on this theme have occurred nearly every year since 2003.
The media has gone strangely silent on the “ahem” improprieties of Wells Fargo, Deutsche Bank and Italy’s thrice bailed out Monte Paschi Bank. Low and behold 6 current and former Deutsche Bank executives have been charged along with Nomura Holdings executives and of course Monte Paschi management as well of falsifying the financial records of Monte Paschi, Italy’s 3rd largest bank in an attempt to manipulate the markets according to European regulators. Shakespeare said it best, “what a tangled web we weave, when we practice to deceive”. Given the levels of debt, corruption and sleaze that runs through governments and the corporations it’s no wonder that the economy is struggling, the middle class is getting decimated and your average person finds that their back is increasingly against the wall.