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Sequestration delivers biggest budget surplus on record refuting dems claims

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?

Rich Mitchell is the Sr. Managing Editor of Conservative Daily News. His posts may contain opinions that are his own and are not necessarily shared by Anomalous Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and google+
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Comments (3)

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  1. Zbigniew Mazurak says:

    Sequestration itself has delivered very little in savings, but what it HAS managed to do is to begin gutting the US military – as I have warned countless times, over and over again, here, on my blog, in the Virginia Business magazine, and elsewhere – and as three consecutive Secretaries of Defense, the Deputy SECDEF, all of the Joint Chiefs of Staff, other generals and admirals (currently serving and retired), and countless analysts from all not-leftist think-tanks (CSBA, CSIS, AEI, HF) have warned.

    Let’s not celebrate sequestration. There is nothing about it to celebrate.

  2. sJ says:

    Sequestration put a drag on growth. Increased revenues is mainly the reason for this. If sequestration were repealed and thoughtful cuts were made instead of across the board dumb cuts, people could spend more. Sequestration just hurts the poor and contracts the economy and causes personal income loss. If we had a jobs bill and infrastructure repair, that would help much more. You cannot cut your way to prosperity. Austerity is wrong wrong wrong.

    • Derrell Poole says:

      Yeah, it’s kinda like slamming on the brakes when going into a car wreck; you reduce speed a tiny bit and thereby reduce a little tiny bit of damage but in the end it is still a car wreck! And who can tell the difference that “speed reduction” made?