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February $223 Billion Budget Deficit Largest Ever

Tyler Durden's picture




 

Well, it's one way to start a deficit cutting scramble. Washington Times reports that the preliminary number for the February deficit, which will formally be released by the FMS shortly, is $223 billion: this is the largest single month deficit in history! So much for prudent budgets and all that. At least the number can only get better from here. Unless, of course, it gets much, much worse, and rates continue creeping higher, resulting in 30% of total revenues being dedicated to paying gross interest, as was previously discussed on Zero Hedge. Then 40%. Then 50%... One gets the picture.

From the Washington Times:

The federal government posted its largest monthly deficit in history in February at $223 billion, according to preliminary numbers the Congressional Budget Office released Monday morning.

That figure tops last February’s record of $220.9 billion, and marks the 29th straight month the government has run in the red — a modern record. The last time the federal government posted even a monthly surplus was September 2008, just before the financial collapse.

Last month’s federal deficit is nearly four times as large as the spending cuts House Republicans have passed in their spending bill, and is more than 30 times the size of Senate Democrats’ opening bid of $6 billion.

Senators are slated to vote this week on those two proposals — both of which are expected to fail — and then all sides will go back to the negotiating table to try to work out a final deal.

Remember, regardless how horrendous the numbers look, the US is neither Greece not Libya. For now.

 

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Mon, 03/07/2011 - 14:06 | 1026686 gorillaonyourback
gorillaonyourback's picture

yep qe3 on the way

Mon, 03/07/2011 - 14:24 | 1026775 Herd Redirectio...
Herd Redirection Committee's picture

I remember back in 2008/ early 2009, the arguments about deflation/inflation.  Aaah, how quaint it seems now, looking back.  At the time it was talked about like deflation was the end of the world but now we get to feel the constantly tightening grip of (accelerating) inflation.  The argument at that time was that the Fed would not monetize the entire housing bust.  OK, maybe they were right about that, but most people completely missed the fact that the Fed would be monetizing MONTHLY federal deficits of $200 billion.  Zimbabwe, here we come.

Check out the latest from the Capital Research Institute: "The King is Dead, Long Live the (new) King":

http://www.capitalresearchinstitute.org

What is happening right now in the world of finance can best be understood from the perspective of… succession planning? Thats right. What is underway right now has a lot in common with what used to happen every time a King’s reign was approaching its end, with the King on his death bed. Superficially everyone would still be following the King’s orders and scrambling around, summoning the finest physicians (somehow we got Timothy Geithner and Ben Bernanke), but just below the surface everyone knows the score, and is preparing for the King’s inevitable death. This leads to a tremendous amount of posturing and scheming, as everyone gets behind their preferred candidate to become the new King.

This is exactly what we witness in the world of international finance at the moment.

Mon, 03/07/2011 - 14:53 | 1026931 Thomas
Thomas's picture

It starts adding up over the months. I am plowing through Meeker's 600 page report entitled, "America Is Soooo Royally Screwed." I won't give away the punchline.

Mon, 03/07/2011 - 15:08 | 1027004 markmotive
markmotive's picture

We saw the punchline in 2010 when the Fed attempted to take away the punch bowl.

Markets tanked.

Lesson: the punchbowl must never be taken away...

http://www.planbeconomics.com/2011/03/03/what-happens-if-the-fed-withdraws-monetary-stimulus/

Mon, 03/07/2011 - 15:51 | 1027152 asdasmos
asdasmos's picture

Realty Mogul, Sam Zell, Talks Inflation - says we're not seeing inflation because the CPI is distorted. (Mar. 3 2011)

 

http://www.cnbc.com/id/15840232/?video=3000008436&play=1

Mon, 03/07/2011 - 17:13 | 1027391 Anaxagoras
Anaxagoras's picture

Tonight's Movie:

Dr. StrangeBen, or: How I Learned to Stop Worrying and Love Inflation

Check local listings, and pop up some popcorn to go with that Fed punch.

Mon, 03/07/2011 - 14:58 | 1026961 Poundsand
Poundsand's picture

Or how about this article in 2007?

 

The Congressional Budget Office estimated Friday that the U.S. federal budget deficit for fiscal year 2007, which ended Sunday, was about $161 billion, or 1.2% of gross domestic product. That’s down from the $248 billion shortfall recorded in fiscal 2006, which translated into 1.9% of GDP. The Treasury Department will report the official tally later this month.

Much of the improvement in the nation’s fiscal outlook in the last year has come from continued rapid growth in federal revenue. CBO estimates that 18.8% of GDP in fiscal 2007, up from 18.4% 2006 and 16.3% in 2004 and 18.4% in 2000. Outlays came to an estimated 20% of GDP, about equal to the average over the previous five years.

While annual federal spending grew 2.8% in fiscal 2007 over fiscal 2006, year to year, revenue grew 6.7%. Individual income-tax receipts are estimated to be 11.3% higher than last year, and corporate income tax receipts are estimated to be 5% higher. Revenue growth has cooled substantially from the 11.8% fiscal year-to-year increase from 2005 to 2006. Spending growth also slowed.

Federal expenditures were up in fiscal 2006 due to Gulf-coast hurricane recovery efforts. They were driven down in fiscal 2007 by legislation enacted in 2006 cutting student loan subsidies and auctioning off a portion of the broadcast spectrum, proceeds from which are recorded as negative expenditures not as revenues.

“While somewhat lower than estimates issued at the beginning of the year, the 2007 deficit announced today by the Congressional Budget Office is no cause for celebration,” said House Budget Committee Chairman John Spratt (D., S.C.)

CBO has estimated that if the U.S. maintains a military presence in Iraq and if Congress doesn’t allow the tax cuts enacted in President George W. Bush’s first term to expire, then recent improvements in the deficit will be reversed, pushing it up to to roughly $300 billion by 2012. – By John Godfrey

 

http://blogs.wsj.com/economics/2007/10/05/deficit-for-fiscal-2007-slides...

 

From the WSJ via Drudge today.

 

Note the last line, "pushing it to roughly $300 billion by 2012"  Dude, we are close to that per month!

 

Bring on QE7

Mon, 03/07/2011 - 15:39 | 1026964 Quixotic_Not
Quixotic_Not's picture

A Kali/Joo Yawk house priced on bankster paper @ $1 mil, but only worth at best $333k based on median income/mortgage affordability?

No problemo!

We'll just have .GOV Sacks' U$ Trea$ury & FED Print-$erves create 3X the fiat currency from nothing, and voila!

Zee house is now worth $1 million in devalued currency...QE 1, 2, 3, 4, XXX to infinity and beyond!

And don't you pathetic serfs think about getting wages to match the unfortunate rise in commodites & cost of living...You wanted it, now you got it! Toyota!

Now, go sit in your McMansions, jerk each other off and die losers...

This nice inconvenient truth brought to you by your friendly (D) & (R) Oligarchy - Thanks for voting us in decade after decade!

Mon, 03/07/2011 - 20:19 | 1027964 Buck Johnson
Buck Johnson's picture

Your correct, they know this economic house of cards is dead and they are vying for position in the new economic model.  And in this model you can bet your last dollar that it won't have the US in any major role in it.

Mon, 03/07/2011 - 19:26 | 1027846 Montecarlo
Montecarlo's picture

Good thing February was a short month!

Mon, 03/07/2011 - 14:10 | 1026701 jal
jal's picture

how do you get a deficit without a budget and with the budget cuts in the extensions?

jal

Mon, 03/07/2011 - 16:17 | 1027231 Zero Govt
Zero Govt's picture

are Budget Deficits any way to lead a country???
Doesn't Washington DC realise if every business in the country followed their 'lead' Washington would have a country of deficit companies that pay no taxes!
..then Washington would have no income AND not be able to raise any debt because they had no income to repay it.
So when Washington raises the debt ceiling maybe every company should cook their books like the US Govt does and declare they're too unprofitable to pay taxes. How are your books looking now o'leader of change we can believe in?

Mon, 03/07/2011 - 16:27 | 1027244 Quixotic_Not
Quixotic_Not's picture

are Budget Deficits any way to lead a country???

No, but it's ONE method used by Banksters to introduce newly mass-produced fiat currency into the "economy" when liquidity is at all time lows due to exhaustion of lower-middle class credit creation.

Unbelievable how transparent the Fraud St./District of Criminals plan is, yet how few actually GET it...

Got Ag?

Mon, 03/07/2011 - 17:27 | 1027437 Zero Govt
Zero Govt's picture

Not sure how transparent their plan is, looks more like the usual State incompetence and corruption from here (did WS plan to go bankrupt or were they just too greedy and too stupid to stop themselves then needing 'old boy' chum Wank Paulson to bail them out of their shithole???)
No Ag but in Gold for the ride... i'm a deflationist so don't believe the currency will collapse for a few years yet, will buy Ag coins nearer the time

Mon, 03/07/2011 - 17:16 | 1027407 Abitdodgie
Abitdodgie's picture

are Budget Deficits any way to lead a country???

Please will people stop saying LEAD they are not our leaders , they are only representatives ( unfortunately) no more and no less

Mon, 03/07/2011 - 18:43 | 1027453 Zero Govt
Zero Govt's picture

Sorry i'll try to whitewash all thoughts put there by incessant and relentless leftie US media propaganda that Obamma was the real and actual 2nd coming of Moses to lead the nation back to greatness ..quite clearly the bankers poodle wasn't the promised historical event

Mon, 03/07/2011 - 14:09 | 1026703 Sudden Debt
Sudden Debt's picture

if you think that's a lot...

JUST WAIT UNTILL NEXT MONTH!!!

 

CTRL-P!!!!

Mon, 03/07/2011 - 16:12 | 1027215 BorisTheBlade
BorisTheBlade's picture

Obviously, US$ 223 bln in February is US$ 7.964 bln deficit per day, since there are 31 days in March as opposed to 28 in February, March deficit should come close to US$ 246 bln assuming constant deficit of:

US$ 331.8 mln per hour

US$ 5.53 mln per minute

US$ 92 thousand per second (80% of households earn less than this amount in the entire year).

Almost a 100 dollar bill every millisecond, 24/7.

Mon, 03/07/2011 - 14:09 | 1026704 cougar_w
cougar_w's picture

What. Can't Von Bernankstein cover that much? $223B is chump change these days.

Mon, 03/07/2011 - 14:12 | 1026714 Sudden Debt
Sudden Debt's picture

It's only 655$ PER AMERICAN CITIZEN!!

SPREADING THE WEALTH!!

 

Americans are such lucky bastards because they get all the gifts...

Mon, 03/07/2011 - 14:19 | 1026751 cougar_w
cougar_w's picture

... and I'm going to be right there on the street getting some when the BernankBucks are falling from the helicopters. Yeah baby!

Mon, 03/07/2011 - 14:24 | 1026779 Sudden Debt
Sudden Debt's picture

there are ways to get the advantage on that one:

http://t3.gstatic.com/images?q=tbn:ANd9GcS1vMYKpt54RbUCCRURjQJabL1I93Z2I_ikz7JM-NqjknUO8sY3&t=1

 

make sure you have one near by ALL OF THE TIME!!

Mon, 03/07/2011 - 14:10 | 1026707 mochoajr
mochoajr's picture

As Charlie Sheen would say, "Winning!"

Mon, 03/07/2011 - 14:30 | 1026798 docj
docj's picture

+1

Mon, 03/07/2011 - 14:10 | 1026710 Hedgetard55
Hedgetard55's picture

When Bill Klintoon submitted his first budget the cry from the Republicans was "$200 billion dollar deficits as far as the eye can see". How far we have fallen since then. Prepare for Financial Armageddon and cannibalism like in "The Road".

Mon, 03/07/2011 - 14:11 | 1026711 kaiten
kaiten's picture

Great to know that the recovery is well on track.

Mon, 03/07/2011 - 14:13 | 1026724 oddjob
oddjob's picture

Change you can believe in.

Mon, 03/07/2011 - 14:32 | 1026809 docj
docj's picture

Yep.  Nothing screams "RECOVERY!!" quite like "the largest monthly federal deficit in the entire recorded history of ever".

Mon, 03/07/2011 - 14:36 | 1026836 alexwest
alexwest's picture

cant say better..
alx

Mon, 03/07/2011 - 16:19 | 1027241 Zero Govt
Zero Govt's picture

how's Obummas Committee of Fiscal Responsibility doing?

Tue, 03/08/2011 - 00:48 | 1028721 StychoKiller
StychoKiller's picture

Disbanded (their checks bounced!)

Mon, 03/07/2011 - 16:51 | 1027325 ColonelCooper
ColonelCooper's picture

Excellent.

Mon, 03/07/2011 - 18:46 | 1027377 Zero Govt
Zero Govt's picture

so bonuses, perks and cushy pensions all round at the Committee for Fiscal Responsibility too ...these Big Govt jobs are just like Big Banking jobs now
red ink = bonanza bonuses

Mon, 03/07/2011 - 14:12 | 1026715 trav7777
trav7777's picture

I disagree with one of the premises of the OP- this can certainly get worse, and it will.

Those deflationists who call for fiscal prudence...JFC, $6B?  It's amazing that they all say we simply MUST cut but nobody can come up with a single fking thing TO cut.  $61B for a year is called draconian.

Mon, 03/07/2011 - 14:17 | 1026742 Sudden Debt
Sudden Debt's picture

If you see what they can do with 61 billion, it makes you think what they did with the 223 billion.

 

Are they buying golden toilet seats for every government owned toilet?

TAKING A CRAP IN STYLE IT'S CALLED!! YES IT IS!!

Mon, 03/07/2011 - 14:30 | 1026806 Shameful
Shameful's picture

Cuts are impossible in the US.  Look at the outrage over the WI thing.  Over what 160 million, not even drop in the bucket.  Spending will increase till the dollar finally gives up the ghost and they can't find a way to kick the can.  The only real game now is to see what order nations blow up in.

Mon, 03/07/2011 - 14:38 | 1026854 EscapeKey
EscapeKey's picture

It's not an American thing. Gordon Fucking Brown raised the public sector spending from 35% to 53% of GDP here in the UK in 10 years, and the morons he essentially paid off to vote for him are now OUTRAGED the public sector has to be cut.

It won't be long before we'll see strikes, 3-day workweeks, and shortages. Oh, and rubbish all over Leicester Square, in a repeat play of the wonderful socialist 70'es.

Mon, 03/07/2011 - 15:01 | 1026974 overmedicatedun...
overmedicatedundersexed's picture

escapek, but London flats are still hot ..RE market is booming and you get free "fish n chips" with each flat, Inflation is non existent in London as well we hear the mayor outlawed it last month.

Mon, 03/07/2011 - 15:41 | 1027117 Calmyourself
Calmyourself's picture

Ha, trash in the square..  Perhaps worry a bit about hangings in the square as the Islamists take over in England.  A bit off topic but not much as we are talking financially overwhelming a society on one hand and out breeding the natives in another.

Mon, 03/07/2011 - 15:36 | 1027102 Jim in MN
Jim in MN's picture

Cuts are possible, inevitable, and occurring.  The Badger State outrage has nothing to do with budget cuts.  The governor, in fact, refuses to discuss the actual budget. 

Mon, 03/07/2011 - 17:06 | 1027371 ColonelCooper
ColonelCooper's picture

The point is, that whether WI or US, we refuse to even discuss cuts.  (I understand the additional contentions in WI)  Wisconsin is just the first state blowing up in a series of lit fuses.

We cannot agree on 60,000,000,000 in cuts out of a 4,000,000,000,000 dollar budget? Start cutting out the zeroes and what do we have left? 6/400? 1.5%?  We honestly can't find a way to cut 1.5% out of the bloated piece of shit we call Washington?

Think Illinois will fare better? California?  Think Dayton is going to pull one out of his ass and get the legislature to balance shit out in a budget he'll sign?

The dominoes are wobbling at the very least.

Mon, 03/07/2011 - 18:53 | 1027765 Jim in MN
Jim in MN's picture

State general fund expenditures are flat in real terms since 2000, and down substantially since 2008.  Federal funds and 'fees' have allowed some illusory spending levels to persist, but structurally the inflection point was reached a long time ago.  Politics tends to obscure this as it is not useful or sexy for political purposes.

But there is a difference between 'flat in real terms' and a 20-30% cut in real terms.  All I'm saying is there isn't a real way to avoid it and the numbers show it's already starting.  Public employee benefits will have to be part of the mix, but maybe less prisons, high school sports facilities and county highways to nowhere too....

Mon, 03/07/2011 - 19:18 | 1027830 ColonelCooper
ColonelCooper's picture

Agreed.  We need to sit down and really figure out what our priorities are, because we're broke.  MN is broke, US is broke, we're broke.

IMO, everything is on the table.  Public employee benefits, SS, Medicare, US Military,,, EVERYHING needs a haircut. We had better decide what is truly "essential", and get rid of the rest.  Until we collectively accept that, and are willing to have an honest discussion at all levels: our dinner tables, school board meetings, city halls, state capitols, and DC, we are going nowhere.

Personally, I have absolutely zero faith that we have the stones to pull it off.  We're gonna blow this SOB all to Hell, and have to crawl out of the rubble.  Maybe it's for the best, IDK.

 

 

Mon, 03/07/2011 - 14:11 | 1026716 euryale
euryale's picture

Nice work - biggest deficit ever during the shortest month. Sweet...

Mon, 03/07/2011 - 14:16 | 1026738 AN0NYM0US
AN0NYM0US's picture

the winter weather in January resulted in the larger deficit in February with Easter late this year and Spring Break(s) underway, February will be the highmark for the year

Mon, 03/07/2011 - 19:56 | 1027910 Rainman
Rainman's picture

...the Critters even took Prezident's week off and still set a world record. Very impressed... the auto-pilot works great.

Mon, 03/07/2011 - 14:12 | 1026717 Dick Darlington
Dick Darlington's picture

US of A is doing it the greek style. Triple A, loooooool!

Mon, 03/07/2011 - 17:04 | 1027259 Zero Govt
Zero Govt's picture

look Timmay said Greece "couldn't possibly happen in America" alright?
Ok he admits his own budget is "financially unsustainable" but that's nothing like Greece, it's only the maths, deficit, debt and out-of-control Govt spending that looks 'a bit similar'

Tue, 03/08/2011 - 00:54 | 1028735 StychoKiller
StychoKiller's picture

...it's only the maths, deficit, debt and out-of-control Govt spending that looks 'a bit similar'...

But aside from that, Mrs. Lincoln absolutely lovvvved the play!

Mon, 03/07/2011 - 14:14 | 1026721 Sutton
Sutton's picture

It snowed a lot in February.

Mon, 03/07/2011 - 14:15 | 1026731 oddjob
oddjob's picture

....and that was on Barry O's desk.

Mon, 03/07/2011 - 14:17 | 1026722 sbenard
sbenard's picture

Inevitable self-immolation! Plan and prepare accordingly!

Mon, 03/07/2011 - 14:15 | 1026727 RobotTrader
RobotTrader's picture

Could see a bloodbath tomorrow.

I am ready. Waiting to see how bad the close is.

Mon, 03/07/2011 - 14:20 | 1026747 AN0NYM0US
AN0NYM0US's picture

.

Mon, 03/07/2011 - 14:31 | 1026815 william the bastard
william the bastard's picture

September-December trendlines broken on all major indices.

QE is ending my friends. Prepare yourselves.

 

Mon, 03/07/2011 - 14:38 | 1026852 gorillaonyourback
gorillaonyourback's picture

how can it end with record deficits?

Mon, 03/07/2011 - 14:47 | 1026897 Boston
Boston's picture

Yup.  And--after the bloodbath begins--where do you suppose the money will flow into?

Mon, 03/07/2011 - 14:54 | 1026932 william the bastard
william the bastard's picture

gas stations, health insurance and credit cards.

Mon, 03/07/2011 - 14:59 | 1026963 Boston
Boston's picture

And US Treasuries....at least until the dust settles and/or hints of QE3 get leaked.

Mon, 03/07/2011 - 18:50 | 1027755 spinone
spinone's picture

horse drawn well-drilling equipment?

 

http://www.dalebooks.com/dale/welldrilctlg10.jpg

Mon, 03/07/2011 - 14:46 | 1026886 Internet Tough Guy
Internet Tough Guy's picture

by RobotTrader
on
Sun, 03/06/2011 - 18:48
#1024540

 

Another good week for "Risk On" assets coming up?

New Zealand stocks hitting new highs...

Looks like a gap up and go for U.S. stocks tomorrow

Mon, 03/07/2011 - 14:14 | 1026730 IrishSamurai
IrishSamurai's picture

Want to know why Libya is about to go HOT ... here's your answer.

There is no recovery.

Now watch this drive ...


Mon, 03/07/2011 - 14:16 | 1026734 Yardfarmer
Yardfarmer's picture

 this is the largest single month deficit in history


and that's the good news!

Mon, 03/07/2011 - 14:28 | 1026793 tgatliff
tgatliff's picture

I wonder how much these numbers might be distorted due to student loans. 

Meaning, simply because the student loans are now on federal books rather than private, they were still guaranteed.  I think student loans are approx. +800 billion at the moment.

Mon, 03/07/2011 - 15:42 | 1027128 Calmyourself
Calmyourself's picture

Unless the 800 billion is defaulted that should be an asset no..

Mon, 03/07/2011 - 14:55 | 1026941 LMAO
LMAO's picture

@ Yardfarmer

 

this is the largest single month deficit in history

 

and that's the good news!

 

Nope, the good news was: February only had 28 days !

LMAO

Mon, 03/07/2011 - 14:16 | 1026735 RobotTrader
RobotTrader's picture

Check this out:

Mon, 03/07/2011 - 14:17 | 1026740 nobusiness
nobusiness's picture

That's a lot of iPads

Mon, 03/07/2011 - 14:21 | 1026758 Sudden Debt
Sudden Debt's picture

the Ipads where a manageable cost....

IT ARE THE 3G SUBSCRIPTIONS AND THE MUCH NEEDED APPS THAT ARE JUNKING THE DEFICIT!!

DAMN YOU S. JOBS!! FOR ALL THE HIDDEN COSTS!!

 

Mon, 03/07/2011 - 14:18 | 1026745 Thomas Jefferson
Thomas Jefferson's picture

QE 3 will not be televised.  Book it.

Mon, 03/07/2011 - 14:21 | 1026762 Sudden Debt
Sudden Debt's picture

we'll be at QE4 before the first pilot of QE3 will get aired on the history channel...

Mon, 03/07/2011 - 14:36 | 1026840 william the bastard
william the bastard's picture

QE2 is looking more like 2-1/2 men. Expect a truncation.

Mon, 03/07/2011 - 15:06 | 1026992 Cleanclog
Cleanclog's picture

Black hole coming.  When our interest costs take up more and more of the tax revenues you can see the US go tilt, even with a printing machine.  As others step away from the US$.  

Will Virginia really begin to take gold and silver as payments?  

Mon, 03/07/2011 - 15:26 | 1027065 trav7777
trav7777's picture

is VA gonna pay in gold and silver?

Mon, 03/07/2011 - 15:59 | 1027173 equity_momo
equity_momo's picture

Greshams Law. No one with more than 2 braincells is paying with gold and silver until their life depends on it.

Mon, 03/07/2011 - 14:19 | 1026748 sbenard
sbenard's picture

...and the 10-year is HIGHER! GO figure!

Mon, 03/07/2011 - 14:21 | 1026749 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Eitherway, the U.S. is dead:

1. Print more money, U.S. dies because the dollar plummets even faster to zero.

2. Stop the printing and the U.S. dies because printing money out of fresh is the only thing keeping the cancerous non-productive, service based, good ol' USA going.

Mon, 03/07/2011 - 14:24 | 1026769 centerline
centerline's picture

Death by inlfation or death by deflation.  Got to love the choices these days.

Mon, 03/07/2011 - 18:35 | 1027697 ElvisDog
ElvisDog's picture

Either way the U.S. doesn't die. Did everyone in Zimbabwe die? The only question is how much pain the U.S. will have to go through until a real recovery begins (and from what level). The longer we print more money, the greater the pain and lower the starting level. The only option is #2, but we need a leader with the guts to do it.

Mon, 03/07/2011 - 18:54 | 1027771 spinone
spinone's picture

Actually, I don't see the Republic surviving this.

Mon, 03/07/2011 - 14:19 | 1026752 guasilas
guasilas's picture

so there's been a big polidtical battle about reducing spending by one quarter  of one month's deficit.  Now that's what I call meeting a problem head on.

Mon, 03/07/2011 - 16:39 | 1027288 Zero Govt
Zero Govt's picture

+1 :)

Mon, 03/07/2011 - 14:21 | 1026753 props2009
Mon, 03/07/2011 - 16:40 | 1027292 Zero Govt
Zero Govt's picture

they're actually both very right and both same time oh so wrong ...that's one for the philosophers to explain!!

Mon, 03/07/2011 - 14:21 | 1026754 centerline
centerline's picture

LOL.  The course is locked in.  The accerator is glued to the floor.  Can't stop now - let alone reverse - or it is game over.  Of course, the current trajectory still has a game over moment coming (at least for the FRN)... but that's maybe a little less sudden than the deflationary wipe-out.

Interesting times.  Reaching new levels of "nervous" each day.

Mon, 03/07/2011 - 16:36 | 1027285 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1430

I hear ya.

Mon, 03/07/2011 - 14:20 | 1026755 DonnieD
DonnieD's picture

I read where the 1099 reporting law from the healthcare bill would have raised 22 billion over 10 years. 2.2 billion a year. They just ran a 223 billion deficit in 1 month. Amazing.

Mon, 03/07/2011 - 14:37 | 1026845 chubbar
chubbar's picture

Yeah, the Federal gov't would be getting the 2.2 billion in revenue while 100+ million citizens are spending an extra 24 hours a year trying to comply. Do the hourly wages math on those numbers. The people who work on these tax schemes are absolute morons.

Mon, 03/07/2011 - 14:22 | 1026767 alexwest
alexwest's picture

from CBO..

corp taxes down y/y, so this is how margin compression works

SS taxes down y/y - I was told there's job growth in USA, so why SS TAXES DOWN??

@hey tyler, could you eleborate on why SS taxes are down y/y ?

game is over folks...

alx

Mon, 03/07/2011 - 14:28 | 1026796 EscapeKey
EscapeKey's picture

Corporate taxes DOWN??? WTF, and here we are, getting blasted with the "outstanding corporate earnings, stocks are cheap" message on repeat play.

Or is it just that the corporations which generate outstanding profits are the ones cheating the IRS?

Mon, 03/07/2011 - 14:38 | 1026846 Kayman
Kayman's picture

Corporate America makes (and hides) its money overseas.

Taxes, why that's for the little people.

Mon, 03/07/2011 - 14:51 | 1026923 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

outstanding corporate earnings

These earnings were all made overseas where Uncle Sam does not get a cut as J6P takes it up the rear in the US. Those overseas countries are now blowing up thanks to Chairsatan's dollar printing.

Mon, 03/07/2011 - 14:31 | 1026813 Henry Chinaski
Henry Chinaski's picture

No, no.  It's gonna be GREAT!  Deficits spark economic growth and we grow our way out of the crisis.

[/sarc]

Mon, 03/07/2011 - 14:36 | 1026843 Larry Darrell
Larry Darrell's picture

SS taxes collected can be down easily with the 2% credit lumped in with the rest of the bullshit that was passed in December.

Mon, 03/07/2011 - 14:38 | 1026844 docj
docj's picture

FICA withholding was cut from 6.2% to 4.2% on the "employee" contribution (yeah yeah I know the "employee" pays it all, of course).  That goes part of the way toward explaining the drop in SS taxes.

Now add in that "new" jobs, such as they are, aren't paying what the "old" jobs paid and that gets you most of the rest of the way there.

Mon, 03/07/2011 - 14:43 | 1026869 alexwest
alexwest's picture

nope..
i'm talking about 2010 and 4qrt of 2010 .. OBAMA reduction of parole taxes started on jan 2011

here's stats
http://www.ssa.gov/OACT/ProgData/tsOps.html

2009 year- 688.9 bln
2010 year - 662 bln

2009 4qrt - 151 bln
2010 4qrt - 145.3 bln

so 12 month sum and 4 quarter sum are all down in 2010 ..why?

if BLS/NBER/BEA tell the true and number jobs is up, and nominal average salaries are up too, so
isnt it supposed SS taxes getting higher ?

alx

Mon, 03/07/2011 - 14:57 | 1026955 docj
docj's picture

Sorry, I answered the wrong question.  However, I think you answered yourself right here...

if BLS/NBER/BEA tell the true and number jobs is up, and nominal average salaries are up too...

Well, the BLS/NBER/BEA are all lying their asses off, there aren't nearly as many "new" jobs and of them, the "new" jobs aren't paying anywhere near what the "old" jobs paid.

Mon, 03/07/2011 - 16:45 | 1027305 Zero Govt
Zero Govt's picture

Correct ...because the 'old' jobs were full time and the 'new' jobs being counted by the Govt monkeys are part time

Mon, 03/07/2011 - 14:24 | 1026774 Hubbs
Hubbs's picture

All the worlds big bankers have fled the sinking ship. I guess the only way to jizz things up is to go to (yet another) war. And this one will be a no bones aboiut it....'"we're in it for the oil."

Mon, 03/07/2011 - 14:32 | 1026810 dark pools of soros
dark pools of soros's picture

but what would really happen?  Just take them all and hand out certain MENA countries to certain G8 members?

China gets Iran, we get SA, Germany gets Libya..  etc etc

Mon, 03/07/2011 - 14:24 | 1026776 MsCreant
MsCreant's picture

Deficit, Shmeficit.

Meh. Who cares. It's all fiction anyway. Where's my lunch? Where's my dinner? Where's my Hossinfeffer?

I am having computer issues. Insert Buggs Bunny Looney Tunes Hossenfeffer clip <here>

Mon, 03/07/2011 - 14:34 | 1026828 cougar_w
Mon, 03/07/2011 - 19:17 | 1027826 MsCreant
MsCreant's picture

Thanks!! 

We can dance if we want to, and leave our cares behind...

Mon, 03/07/2011 - 14:25 | 1026782 EscapeKey
EscapeKey's picture

So why is it so big for February? By the looks of things, it's an annual event - surely this must means some items are booked in Feb every year?

The annual budget deficit is around $1.6tn. $223 is nearly 14%, or well over the average monthly, 8.3% of $1.6tn = $133bn.

Mon, 03/07/2011 - 14:31 | 1026803 101 years and c...
101 years and counting's picture

tax refunds and rebates.  millions of people get all their fed tax withholding back in Feb....

 

Mon, 03/07/2011 - 14:27 | 1026790 trillion_dollar...
trillion_dollar_deficit's picture

Remember when the progs thought this was a bad number for an entire year under Bush?

 

Bububububububububut BOOOOOOOOOSH

Mon, 03/07/2011 - 14:30 | 1026799 EscapeKey
EscapeKey's picture

B-b-but partisan hacks.

Mon, 03/07/2011 - 14:33 | 1026822 trillion_dollar...
trillion_dollar_deficit's picture

Naw ... an equal opportunity hater who enjoys pointing out hypocrisy. :)

Mon, 03/07/2011 - 15:46 | 1027139 Calmyourself
Calmyourself's picture

+1 stunning ma, ma, monumental hypocricy, a liberals bread and butter.

Mon, 03/07/2011 - 14:33 | 1026821 alexwest
alexwest's picture

under bush jr. deficits was never less 450 bln per year..

official deficit figures never included SS profits..
back then SS taxes were more then outlays ..
until 2010 year

alx

Mon, 03/07/2011 - 14:29 | 1026797 dark pools of soros
dark pools of soros's picture

just think if this was a leap year!!

Mon, 03/07/2011 - 14:29 | 1026800 Onlygold1
Onlygold1's picture

$223-Billion is only 2 pomo's.... why worry?

Mon, 03/07/2011 - 14:32 | 1026811 Onlygold1
Onlygold1's picture

$223-Billion is only 2 pomo's.... why worry?

Mon, 03/07/2011 - 14:43 | 1026872 cougar_w
cougar_w's picture

And if the pomo don't move it, QE3 certainly will.

We just can't lose.

Mon, 03/07/2011 - 19:22 | 1027837 MsCreant
MsCreant's picture

Liquidity! Stimulous! I finally get it! These things are enemas for the economy because our government is full of shit!

Thanks again coug! Green shoots everywhere!

Mon, 03/07/2011 - 20:09 | 1027941 cougar_w
cougar_w's picture

Enemas for the economy. That is truly excellent.

Mon, 03/07/2011 - 14:33 | 1026816 Bastiat
Bastiat's picture

"O'Neill said he tried to warn Vice President Dick Cheney that growing budget deficits-expected to top $500 billion this fiscal year alone-posed a threat to the economy. Cheney cut him off. "You know, Paul, Reagan proved deficits don't matter . . . A month later, Cheney told the Treasury secretary he was fired. "

 http://www.ontheissues.org/2004/Dick_Cheney_Budget_+_Economy.htm

 

 

Mon, 03/07/2011 - 14:33 | 1026817 sbenard
sbenard's picture

Imagine the ANNUAL deficit at that rate. You do the math! That's good for a nice cold chill up the spine!

Mon, 03/07/2011 - 14:33 | 1026818 Alcoholic Nativ...
Alcoholic Native American's picture

I did my part.

 

 

Mon, 03/07/2011 - 14:32 | 1026825 dick cheneys ghost
dick cheneys ghost's picture

apparent new video of 9/11 attacks from police helicopter.

 

http://nakedempire.wordpress.com/

Mon, 03/07/2011 - 14:38 | 1026847 Alcoholic Nativ...
Alcoholic Native American's picture

was hoping it would be the pentagon videos.  Who uploaded them?

Mon, 03/07/2011 - 14:43 | 1026879 chubbar
chubbar's picture

I see that they still haven't found the footage of the plane that caused building 7 to fall into it's own footprint. Oh well, maybe next video.

Mon, 03/07/2011 - 14:55 | 1026936 luk427
luk427's picture

I would like to see footage of all the gold being stolen from #7.    http://snardfarker.ning.com/video/911-wtc-biggest-gold-heist-in

Mon, 03/07/2011 - 16:20 | 1027243 jomama
jomama's picture

still waiting for that independant investigation into that demolition job.

Mon, 03/07/2011 - 14:40 | 1026857 overmedicatedun...
overmedicatedundersexed's picture

we can spend our way outta this mess, yes we can !yes we can! yes we can!

aaah shit

Mon, 03/07/2011 - 14:44 | 1026885 ghostfaceinvestah
ghostfaceinvestah's picture

"Unless, of course, it gets much, much worse, and rates continue creeping higher, resulting in 30% of total revenues being dedicated to paying gross interest"

And much of that interest is paid to the Fed, who returns it to the Treasury as a "profit".

 

Mon, 03/07/2011 - 16:02 | 1027181 stewie
stewie's picture

True, interests earned by the FED, minus expenses, are remitted back to the Treasury.  So this means 3 things:  

1- The Gvmt gets a loan virtually interest free from the Fed.

2- Taxpayers pays for all of the FED 's expenses.

3- Taxpayers pays interests to the banks, since the Fed's expense include interest on Bank reserves, which are now over 1 cool Trillion.

 

http://research.stlouisfed.org/fred2/series/EXCRESNS?cid=50

 

 

Mon, 03/07/2011 - 18:52 | 1027757 Greenhead
Greenhead's picture

Don't forget the compounding interest component on the $14 trillion and growing is an excellent excuse to increase taxes as a means to balance the budget. 

Mon, 03/07/2011 - 14:46 | 1026895 KCMLO
KCMLO's picture

That's great news considering it's the shortest month of the year.

Mon, 03/07/2011 - 14:48 | 1026901 RmcAZ
RmcAZ's picture

Debt = wealth, right?

This is bullish... proceed buying AAPL, nothing to see here.

Mon, 03/07/2011 - 14:56 | 1026940 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

BTFD!!

Mon, 03/07/2011 - 14:49 | 1026903 sbenard
sbenard's picture

If we did this throughout the year, the deficit would represent 76% of the budget!

Mon, 03/07/2011 - 14:50 | 1026906 DNB-sore
DNB-sore's picture

what does this mean to the 51st or 52nd state of The US i am living in?

thanksssssssssssssssssss!

Have to get my position right, I have time i thinks, things are happening here months later normally, or is it real-time by now?

Mon, 03/07/2011 - 15:16 | 1027028 High Plains Drifter
High Plains Drifter's picture

Obama graduated from Harvard Law School and received the Nobel Peace Prize and by God if he says there are 52 states in the union, yes, there are 52 states.

 

 

Mon, 03/07/2011 - 15:31 | 1027084 Quixotic_Not
Quixotic_Not's picture

Prez Barry was including Kenya & Indonesia - Harvard trained manipulators are taught to be  forward thinking apparatchiks, didn't you get the memo comrade?

Mon, 03/07/2011 - 14:54 | 1026935 Caveman93
Caveman93's picture

Holy shit and to think they were able to make a new record on the shortest 28 day month! That's freakin awsomesauce!

Mon, 03/07/2011 - 15:08 | 1026993 SilverRhino
SilverRhino's picture

$223 Billion : Put into perspective. 

1115 F-22 Raptors OR

302 B-2 Bombers  OR

30 Super Aircraft Carriers OR

51,860 M-1 Abrams Main Battle Tanks OR

2.2 MILLION jobs paying $100K a year.

This is what our government PISSES away.

 

Mon, 03/07/2011 - 15:17 | 1027029 alexwest
alexwest's picture

#2.2 MILLION jobs paying $100K a year.

yep ... its about what federal goverment pays in salaries to all federal workers per year...
not much actually..

alx

Mon, 03/07/2011 - 15:10 | 1027007 redpill
redpill's picture

Charlie Sheen for Fed Chairman!

Mon, 03/07/2011 - 15:13 | 1027024 High Plains Drifter
High Plains Drifter's picture

He is the ho and crack chair satan.

Mon, 03/07/2011 - 16:54 | 1027332 Zero Govt
Zero Govt's picture

...maybe but I'll second Charlie for Fed Chair... and Ronald McDonald for Treasury and Benny Hill for President (about time you had a Brit' elected) ...and know what, bet they're less of a clown show than the fuking jokers you have now?!!!

Mon, 03/07/2011 - 15:14 | 1027021 High Plains Drifter
High Plains Drifter's picture

But, but , but , the Republicans won back the house of Reps now so we should be getting fiscal responsibility now, no?

Mon, 03/07/2011 - 15:50 | 1027149 Calmyourself
Calmyourself's picture

I used to be Republican, now I am an equal opportunity hater searching for hypocrisy to hate on..

Mon, 03/07/2011 - 16:59 | 1027346 Zero Govt
Zero Govt's picture

when the penny drops that there's a red coloured tape-worm and a blue coloured tape-worm both feeding off societies back everything in Washington DC falls into place ...everything else is a PR whitewashing operation to cover over the stink ...welcome to "democratic Government"

Mon, 03/07/2011 - 15:23 | 1027048 glenlloyd
glenlloyd's picture

To not be able to get a yearly spending cut of one sixth of the shortest month budget deficit ever is a testament to the degree of disconnect with reality that DC exists in.

I become more convinced every day that our situation is irreversible and the people of this country will pay a serious price for the mistakes government has made and continues to make.

Mon, 03/07/2011 - 15:30 | 1027049 Seasmoke
Seasmoke's picture

Hard to Believe !

Mon, 03/07/2011 - 16:11 | 1027212 stewie
stewie's picture

Not really, it makes perfect sense actually.  Look at what they do, not what they say.   They are actually trying to increase total debt, to fillup the gap left by private sector de-leveraging.  Say it loud, say it proud, we’re all Keynesians now!

 

http://www.youtube.com/watch?v=d0nERTFo-Sk

Mon, 03/07/2011 - 15:25 | 1027061 gridlock
gridlock's picture

Hehe, the newly appointed VP of Federal Reservistan Janet Yellen just said in Europe that the developing nations made the crisis, because they were running surpluses - http://blogs.wsj.com/economics/2011/03/04/yellen-places-blame-for-crisis...

that easily takes the cake for one of the more moronic things i've heard these days, plus it shows what kind of game they shoot for at the Fed - Shameless Cougar!

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