The White House has released President Biden’s budget for his first full fiscal year. FY2022 begins on October 1, 2022 and runs through September 30, 2023.
You will note the budget was released on Friday ahead of the long Memorial Day holiday weekend, a strategy to keep publicity and scrutiny to a minimum.
Federal debt is already greater than the entire productivity of the US economy. Nevertheless, it is a $6 trillion Biden blowout budget, and like all Washington federal budgets, it is built on a foundation of utter nonsense.
For example, it assumes there will be no recession for the next nine years, although recessions appear on average about every five years.
There are other “Rosie Scenario” assumptions is the budget. It assumes higher revenue from retroactive tax hikes than those predicted by the bi-partisan Congressional Budget Office.
Biden assumes that inflation won’t surpass 2.1 percent this year. It also makes the transparently absurd assumption that inflation won’t surpass 2.3 percent for the next ten years, although the Consumer Price Index for the January – March quarter this year shows prices rising at a 7.5 percent annual rate.
Probably the biggest fib of all is the White House insistence that the new spending “will pay for itself.” We hear that every year, yet it never does pay for itself. If it did, the national debt wouldn’t be more than $28 trillion. In fact, we propose that the “pay for itself” lie be allowed to retire now along the other leading lies of all-time including “Your check is in the mail,” and the other big ones.
With his proposal Biden seeks to normalize the huge growth of government experienced with the emergency appropriations during the Covid pandemic shutdown.
Despite commerce and other conditions returning to normal, Biden’s proposal is 36 percent higher than the $4.4 trillion pre-Covid FY2019 budget.
Other provisions include an increase in corporate tax rates from 21 percent to 28 percent. It also includes a provision to fund increased IRS enforcement.
In short, Biden’s budget is big, punitive, and dishonest. No wonder gold closed over $1,900 an ounce. Both gold and silver both rose about 8 percent in May.
Time to add more gold and silver to your portfolio?