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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 | Link to Comment gorillaonyourback
gorillaonyourback's picture

yep qe3 on the way

Mon, 03/07/2011 - 14:24 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Montecarlo
Montecarlo's picture

Good thing February was a short month!

Mon, 03/07/2011 - 14:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment mochoajr
mochoajr's picture

As Charlie Sheen would say, "Winning!"

Mon, 03/07/2011 - 14:30 | Link to Comment docj
docj's picture

+1

Mon, 03/07/2011 - 14:10 | Link to Comment 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 | Link to Comment kaiten
kaiten's picture

Great to know that the recovery is well on track.

Mon, 03/07/2011 - 14:13 | Link to Comment oddjob
oddjob's picture

Change you can believe in.

Mon, 03/07/2011 - 14:32 | Link to Comment 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 | Link to Comment alexwest
alexwest's picture

cant say better..
alx

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

how's Obummas Committee of Fiscal Responsibility doing?

Tue, 03/08/2011 - 00:48 | Link to Comment StychoKiller
StychoKiller's picture

Disbanded (their checks bounced!)

Mon, 03/07/2011 - 16:51 | Link to Comment ColonelCooper
ColonelCooper's picture

Excellent.

Mon, 03/07/2011 - 18:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment euryale
euryale's picture

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

Mon, 03/07/2011 - 14:16 | Link to Comment 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 | Link to Comment 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 | Link to Comment Dick Darlington
Dick Darlington's picture

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

Mon, 03/07/2011 - 17:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sutton
Sutton's picture

It snowed a lot in February.

Mon, 03/07/2011 - 14:15 | Link to Comment oddjob
oddjob's picture

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

Mon, 03/07/2011 - 14:17 | Link to Comment sbenard
sbenard's picture

Inevitable self-immolation! Plan and prepare accordingly!

Mon, 03/07/2011 - 14:15 | Link to Comment 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 | Link to Comment AN0NYM0US
AN0NYM0US's picture

.

Mon, 03/07/2011 - 14:31 | Link to Comment 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 | Link to Comment gorillaonyourback
gorillaonyourback's picture

how can it end with record deficits?

Mon, 03/07/2011 - 14:47 | Link to Comment 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 | Link to Comment william the bastard
william the bastard's picture

gas stations, health insurance and credit cards.

Mon, 03/07/2011 - 14:59 | Link to Comment 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 | Link to Comment spinone
spinone's picture

horse drawn well-drilling equipment?

 

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

Mon, 03/07/2011 - 14:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Calmyourself
Calmyourself's picture

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

Mon, 03/07/2011 - 14:55 | Link to Comment 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 | Link to Comment RobotTrader
RobotTrader's picture

Check this out:

Mon, 03/07/2011 - 14:17 | Link to Comment nobusiness
nobusiness's picture

That's a lot of iPads

Mon, 03/07/2011 - 14:21 | Link to Comment 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 | Link to Comment Thomas Jefferson
Thomas Jefferson's picture

QE 3 will not be televised.  Book it.

Mon, 03/07/2011 - 14:21 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment trav7777
trav7777's picture

is VA gonna pay in gold and silver?

Mon, 03/07/2011 - 15:59 | Link to Comment 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 | Link to Comment sbenard
sbenard's picture

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

Mon, 03/07/2011 - 14:21 | Link to Comment 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 | Link to Comment centerline
centerline's picture

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

Mon, 03/07/2011 - 18:35 | Link to Comment 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 | Link to Comment spinone
spinone's picture

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

Mon, 03/07/2011 - 14:19 | Link to Comment 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 | Link to Comment Zero Govt
Zero Govt's picture

+1 :)

Mon, 03/07/2011 - 14:21 | Link to Comment props2009
Mon, 03/07/2011 - 16:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ $1430

I hear ya.

Mon, 03/07/2011 - 14:20 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment cougar_w
Mon, 03/07/2011 - 19:17 | Link to Comment MsCreant
MsCreant's picture

Thanks!! 

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

Mon, 03/07/2011 - 14:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment EscapeKey
EscapeKey's picture

B-b-but partisan hacks.

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

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

Mon, 03/07/2011 - 15:46 | Link to Comment Calmyourself
Calmyourself's picture

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

Mon, 03/07/2011 - 14:33 | Link to Comment 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 | Link to Comment dark pools of soros
dark pools of soros's picture

just think if this was a leap year!!

Mon, 03/07/2011 - 14:29 | Link to Comment Onlygold1
Onlygold1's picture

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

Mon, 03/07/2011 - 14:32 | Link to Comment Onlygold1
Onlygold1's picture

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

Mon, 03/07/2011 - 14:43 | Link to Comment 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 | Link to Comment 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 | Link to Comment cougar_w
cougar_w's picture

Enemas for the economy. That is truly excellent.

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

I did my part.

 

 

Mon, 03/07/2011 - 14:32 | Link to Comment 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 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

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

Mon, 03/07/2011 - 14:43 | Link to Comment 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 | Link to Comment 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 | Link to Comment jomama
jomama's picture

still waiting for that independant investigation into that demolition job.

Mon, 03/07/2011 - 14:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment KCMLO
KCMLO's picture

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

Mon, 03/07/2011 - 14:48 | Link to Comment RmcAZ
RmcAZ's picture

Debt = wealth, right?

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

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

BTFD!!

Mon, 03/07/2011 - 14:49 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment redpill
redpill's picture

Charlie Sheen for Fed Chairman!

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

He is the ho and crack chair satan.

Mon, 03/07/2011 - 16:54 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Seasmoke
Seasmoke's picture

Hard to Believe !

Mon, 03/07/2011 - 16:11 | Link to Comment 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 | Link to Comment 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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