From the Blog: Wolf Street.
This is Why US Gov. Deficit Numbers are a BIG Lie by Wolf Richter • October 1, 2016
To smoothen out those factors, we look at fiscal 2016 and 2015 combined: the gross national debt ballooned by $1.71 trillion over those two years, $850 billion on average each year. There were only four years in the history of the US, when deficits exceeded this average: 2009-2012. Not too shabby, for a booming economy. But follow me. This is just to lay down some basic numbers, as we’re drilling into the mystery of how the government borrowed $4 trillion more than it said it spent since 2003. Those $4 trillion in borrowed money – the bonds are still out there – went up in smoke, according to government numbers. But money doesn’t go up in smoke. It flows somewhere. So follow me. This is how the US gross national debt has ballooned since 1980, from less than $1 trillion to nearly $20 trillion ($19.53 trillion).
Deficit spending has become a huge stimulus package that does not stimulate the bogged-down economy.
Remember when the US government had “surpluses” in the years 1998-2001? Well, yes, according to the Office of Management and Budget, those four years produced a combined $559 billion in “surpluses”:
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?
The whole article can be found here: This is Why US Gov. Deficit Numbers are a BIG Lie.