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ProSense

(116,464 posts)
Tue Apr 30, 2013, 09:45 AM Apr 2013

On deficits, declare victory and go home

On deficits, declare victory and go home

By Steve Benen



It didn't generate much attention yesterday, but something rather amazing happened to the finances of the United States.

The Treasury Department announced Monday that it would reduce its level of debt in financial markets for the first time since President Obama took office.

The department said it expects to pay down a net of $35 billion in its marketable debt for the second quarter of 2013, the first time it has done so since 2007. <...>

(T)hanks to unexpectedly higher receipts of government revenue and lower outlays in spending, the Treasury is experiencing a swing in fortune that allows officials to actually pay down some of its outstanding debt.

As a practical matter, this is one of the reasons the nation probably won't have to raise its debt ceiling until October, which is good news. Congressional Republicans are suggesting they're prepared to once again hold the country hostage, threatening to hurt Americans on purpose unless they get their way, so the more the crisis is delayed, the better.

But even putting that aside, yesterday's Treasury announcement is amazing in its own right. At a basic level, a federal budget deficit refers to instances in which the government spends more than it takes in. When that happens, it's up to the Treasury Department to borrow to make up the difference.

This quarter, however, the government will take in more than it spends, thanks in large part to increased taxes on the wealthy approved in January. Instead of borrowing more this quarter, the Obama administration will be able to pay down $35 billion in debt -- the first such payment in the U.S. since 2007.

- more -

http://maddowblog.msnbc.com/_news/2013/04/30/17984395-on-deficits-declare-victory-and-go-home



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On deficits, declare victory and go home (Original Post) ProSense Apr 2013 OP
Kick! n/t ProSense Apr 2013 #1
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