www.zerohedge.com by Tyler Durden
Authored by Lawrence McDonald via The Bear Traps Report
The Legendary “W” Games
Over the last 250 years of American political gamesmanship, both parties have played year-end games into the arms of a new incoming administration. In early 2000, the incoming George Walker Bush team discovered that every keyboard in the White House and other administrative offices was missing the “W” key.
The outgoing Clinton staff had removed all the “W” keys to annoy the new administration after an extremely contentious election.
The damage was small, estimated at $15,000.
But the bigger message here was that when the party that runs the White House changes, the outgoing administration will leave some proverbial “time bombs” for their successors.
While the damaged keyboards were more like a bad joke, what Biden is doing to Trump now is serious business. The outgoing administration has opened the spigots table max to get every penny out the door while they can under the existing budget.
It’s almost like they are looting the Treasury before they leave town.
Biden is Opening the Floodgates with Spending
Spending for 2025 is expected to exceed $2Tr by the time Biden leaves DC on January 20th. This is over 30% of the annual budget, and Trump will have to cut spending for the rest of the year to stay within the limits of the allocated budget. This could mean a notable slowdown in GDP growth in the first quarters of 2025.
Bonds have taken Notice
Ever since the Fed cut rates in September, U.S. 10-year bond yields are about 1% higher, and mortgage rates are following in lockstep. Hedge funds are selling short, betting on lower bond prices into colossal incoming bond sales from the U.S. Treasury. This is a highly unusual activity and has the fingerprints of the bond vigilantes everywhere; a revolt is in the works.
Lunatics – as Usual – on Capitol Hill
Congress, in its usual fashion, has failed to agree on the next budget, so the government is currently operating under a “continuing resolution” (CR). This continuing resolution means the government is allowed to spend the same amount of money they spent last year, which is $6.75TR. The government’s fiscal year started on October 1st, and Biden is on a run rate to spend almost $2TR by the end of December and a deficit that may exceed $800bl (+60% y/y). So, when Trump comes in on January 20th, he has three quarters left of the government’s fiscal year, but by then, Biden has spent more than 30% of the total allocated budget…
READ FULL ARTICLE HERE… (zerohedge.com)
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Just another example of Biden being a total POS. And those that have chosen to elect him let alone back him and his administration as well as his total disregard for America should be totally ashamed. Sadly, afraid they’re not and already planning as much disruption and discord as possible prior to DJT’s inauguration. A statement and accounting needs to happen with in the next 4 year term.