Federal Deficit Analysis

2024
$5,757 Borrowed Per Person

Will Your Family Miss The Money

Please Share   10/4/24

Debt Analysis, federal

 Are Taxes the Problem?

Proposed Solution

 

All 21st Century Presidents Borrowed

President Carter last US President to Actively Try to Lower Deficits.
President Clinton lowered it, though I do not know how.

Great Class Discussion Material

 

 

When Treasury Needs Money, the Fed Can Provide It.
With Covid, FED bought Most of the Trump-Biden Giveaway

 

 

Proposed Federal Deficit Solution

Prelude: Follow the Money

Federal off budget programs (OBP) are not included in the traditional federal budget that is presented to Congress.
 Key Programs

  1. Social Security: The Social Security program is funded through its own trust funds, primarily the Old-Age and Survivors Insurance (OASI) and the Disability Insurance (DI) funds. While the program's financial status affects the overall fiscal health of the government, it is technically considered off-budget because its receipts and expenditures are not included in the annual federal budget.

  2. Medicare Trust Fund: Similar to Social Security, Medicare has its own trust funds, including the Hospital Insurance Trust Fund (Part A). This allows it to function independently from the on-budget operations of the federal government.

  3. Federal Reserve System: The Federal Reserve operates independently of the federal budget. While the income generated by the Federal Reserve (from interest on government securities, for example) is transferred to the U.S. Treasury, the central bank's operations and profits are not included in the federal budget.

  4. Tennessee Valley Authority (TVA): As a self-financed corporation, the TVA does not rely on federal appropriations for its funding but may still be considered off-budget due to its unique status as a government-owned utility that operates under its own revenue-generating model.

  5. Export-Import Bank: This government agency provides financing assistance to support U.S. exports. Its financial performance is often evaluated separately from regular federal budget processes.

Building a Federal Budget Management Control System

1. Each years SS and M OBP cash flows should be separately reported.

2. Trust Fund Needs of SS and M should be discussed together.

3. Based on 1 and 2 US should ...

 

See Democratic Capitalism Vs. Capitalistic Democracy

 

Government Sponsored Programs

  1. Fannie Mae (Federal National Mortgage Association): Fannie Mae is focused on expanding the secondary mortgage market. It buys mortgages from lenders, providing them with liquidity so they can offer more loans to homebuyers. By doing this, it aims to make homeownership more accessible to Americans.

  2. Freddie Mac (Federal Home Loan Mortgage Corporation): Similar to Fannie Mae, Freddie Mac also purchases mortgages from lenders and helps to provide liquidity in the housing market. It plays a crucial role in supporting a stable and affordable housing finance system.

  3. Federal Home Loan Banks (FHLBanks): This network of 11 regional banks supports the mortgage market by providing low-cost funding to member financial institutions. They focus on supporting housing finance and community development.

  4. Tennessee Valley Authority (TVA): While often cited more as a public corporation rather than a GSE, the TVA provides electricity generation and flood control in the Tennessee Valley region, balancing economic development with environmental stewardship.

  5. Government National Mortgage Association (Ginnie Mae): Ginnie Mae primarily guarantees mortgage-backed securities backed by government loans, such as those from FHA, VA, and USDA programs. It ensures that investors are protected against default risk.

  6. Amtrak (National Railroad Passenger Corporation): Although primarily a service provision entity, Amtrak receives federal support and operates with a mandate to provide intercity passenger rail service, which can position it as a quasi-governmental entity.

These GSEs are designed to facilitate lending, promote homeownership, support rural development, and provide financial services to various sectors. While they operate with some level of government backing, they also engage in private-sector practices, which allows them to function with more operational flexibility.

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