Deficits Carry Consequences

When spending exceeds revenue collected, layoffs within the public sector are inevitable. These are the consequences of the well-established vicious cycle in the US Federal Budget Deficit - The Formula.

The public has been told for years that deficits do not matter. They do, unfortunately. Even when the printing press, through timulus and special programs, maintains and protects public employment and services, it devalues the curreny and generates inflation.

US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed:


Gold adjusted or real revenues continues to contract at a faster rater than real spending. This places greater pressure on centralize funding, i.e. the printing press, to fill the spending void to maintain the standard of living within the public sector.

Real or Gold Adjusted Federal Total Receipts 12-Month Moving Average (TR12MA) AND Federal Total Receipts 12-Month Moving Average Year-over-Year Change (TW12MA12LN)


Real or Gold Adjusted Federal Total Outlays 12-Month Moving Average (TO12MA) AND Federal Total Outlays 12-Month Moving Average Year-over-Year Change (TW12MA12LN)


Headline: Camden, NJ braces for deep police, fire cuts

Yet another crisis is upon this burdened city, among the most impoverished and crime-ridden in the country.

Deep layoffs of city workers go into effect on Tuesday -- cutting up to 383 jobs, or one-fourth of the city's employees.

The exact number depends on whether public workers' unions make last-minute concessions. In any case, the cuts are likely to be deep -- and could be a blow to the quality of life in a city where more than half the 80,000 residents, mostly black and Hispanic, live in poverty.

Source: finance.yahoo.com
Source: fms.treas.gov