Less than a Year Ago I told everyone Here….

The economy will boom in 6 months to a year…

Read  this article and remember my post that Bernanke, among others, is worried we we wont be able to finance the growth because of Republican’s religious belief that deficit spending is a negative thing in our economy:

WASHINGTON — The capital may be enduring a brief spell of record-low temperatures this week, but the federal deficit continues to melt away.

According to the latest figures from the nonpartisan Congressional Budget Office, the red ink for the first quarter of fiscal 2014, which began Oct. 1, dropped by almost 40% compared with the same period a year earlier.

The deficit has gone down so much that the federal government actually ran a surplus for December — a one-time occurrence that resulted from some special circumstances but still an indicator of the rapidly improving state of the government’s finances.

Indeed, many prominent economists, including outgoing Federal Reserve Chairman Ben Bernanke, have suggested that the deficit is now coming down too fast.

At a news conference last month, Bernanke said fiscal policy had been too tight recently — central bank jargon for suggesting that with the economy still operating below capacity, a somewhat higher deficit over the next year would help, not hurt.

The magnitude of the change is striking. For October to December 2012, the government ran a deficit of $293 billion. By the last three months of 2013, the deficit had shrunk by $111 billion, to $182 billion.

An improving economy and tax increases that took effect in 2013 both pushed revenues higher and accounted for about 40% of the improvement; spending reductions accounted for the rest. A chunk of the improvement involved one-time events, but most of the change represents a real, long-term shift in the government’s finances.

Assuming the economy continues to grow at its current rate or perhaps a bit faster, as most economists forecast, the deficit will continue to decline through the rest of the current fiscal year.

http://www.latimes.com/nation/nationnow/la-pn-deficit-20140109,0,1467119.story#ixzz2purrxbfP