The Federal government posted the largest budget surplus on record for the month of June thanks to budget cuts and mortgage giants Fannie and Freddie paying back a portion of the bailouts.
June’s federal balance sheet leaned $117 Billion to the positive thanks mainly to the cuts that came from sequestration – a clear win for the Conservatives in Congress who have been pushing for cuts to pigish government spending. A smaller portion, just $59 Billion came from a payback by government-backed mortgage giants Fannie Mae and Freddie Mac.
While news outlets point to an improving economy, which there is little proof of, the spending cuts are the main source of the budget surplus.
While the surplus is looked upon as a great positive, it is far too small to affect the gigantic public debt incurred by decades of over-spending and failure to manage the nation’s finances.
Obamacare will likely deplete such small deficits if it is ever allowed to go into effect.
It is being reported that the surplus will stave off the upcoming debt ceiling battle. While this may come to pass, lunar national parks, a bloated farm bill and other spending are likely to spend future surpluses before they can truly balance the budget.
The wide-breadth spending cuts brought about by sequestration are the main reason for the surplus, but leave it to the media to mention that as nothing more than a foot note. Here’s the very last sentence of a CNBC article on the subject:
Across-the-board budget cuts began March, which also contributed to the surplus.
Yeah… spending cuts causing a surplus… who’d a thunk it?