July Budget Deficit Hits ($165 Billion), Slightly Better Than Expectation Of ($169), Longest String Of Monthly Deficits On Record
The FMS has released its July monthly budget: on receipts of $156 billion and outlays of ($321) billion, the total budget deficit was ($165) billion, on expectations of ($169) billion. This marks the 22nd straight month of budget deficits and is the longest string on record. The comparable numbers in 2009 were receipts of $152 billion, or roughly comparable to this year, while outlays were $11 billion higher at ($332), for a total deficit of ($180) billion Total YTD receipts now amount to $1.752 trillion. With just two months left the in the fiscal year, the budget estimate is for total revenue of $2.132 trillion. On the outlays side, the US has spent $2.922 trillion YTD, and budgets total outlays of $3.603 trillion. More importantly, with 22 months of deficits, it is now increasingly clear that America will never have a monthly surplus ever again. And the more debt is issued, the riskier the budget picture becomes, as the second rates begin increasing, now that the duration of US debt has increased by one year in the past 18 months, the interest payments are sure to explode, requiring even more borrowing, and so on, in true subprime borrower fashion, ad inf.