The Shocking Reason Why The US Just Spent A Record $429 Billion In One Month
Combining these two means that YTD, the deficit jumped to $523.1BN vs $399.2BN last year.
While many analysts had a deficit base case for fiscal 2017 at roughly
$575BN (the year ends on Sept 30), the CBO recently revised its
projection for the fiscal 2017 up by $134 billion to $693 billion. Most of the CBO revision reflects weaker than expected revenues.
To summarize: what the unexpected surge in government outlays means is that quietly and mostly behind the scenes, the student debt bubble has begun to burst, and the Treasury is "provisioning" for it in real time, with all US taxpayers once again on the hook.
Finally, since the $1+ trillion student loan bubble is expected to end up with discharges of 35% if not higher, it means that over the next several years, the budget deficit will be incrementally boosted by approximately $350 billion as America's taxpayers are once again taken to the cleaners, this time to bail out million of liberal arts majors who for one reason or another just can't pay back their student loans.