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US More Bankrupt Than Ever - $83 Billion April Deficit Is Record For The Month, $30 Billion Worse Than Expected As Tax Receipts Plunge
Well, if nothing else, we now know officially just how great those tax receipts were. Good thing too - we can end that whole superficial tax receipt debate and focus on important things. April's tax deficit of $83 billion was the highest April deficit on record. America is now more bankrupt than ever. Income was $245.3 billion, 8% below the total
recorded last April. Spending was $328.0 billion, up 14%
year-over-year. A
year ago in April the deficit was $20.9 billion. And here is the data: tax receipts down 7.9% YoY, Individual Income Tax down 21.5% YoY, and more importantly, spending: Total spending up 14.2%, National defense up 17%, Medicare up 39.4%, Social Security up 4.2% and General Government up 5.6%. At least interest payments were down 9.5%.
And now back to your regularly scheduled bankrupt country market melt up.
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I go to FOX, MSNBC, CNBC - all on rare occasions (local news is worse); just to pretend to watchful friends that I am normal and can actually dit down and watch TV - and I'm always thinking, "What about the f'ing news! This is all adopted animals bullshit. I need a chianti."
"Attenstion shoppers, gold is on sale on aisle four. We also have silver discounted at 70% of REAL value with gold priced in at its current one. This is your last chance before we expand the store into the full bore depression department. We are also planning on closing during the HYPREINFLATION holiday coming up. Thank you and have a nice day."
Mr Lennon that is funny, but makes me want to cry. Never got that address then i wondered whos address i was really getting. days of wide open trust are gone. Is there a way to donate to ZH that is not internet based?
Have you tried calling them? MH, you still have your heart, and that is why you laugh and cry. PMs may be scarce, but open hearts are more so. You are blessed.
Thank you Mr Lennon. I gave up two more today . I figured out i dont need that much so i am passing out the xtra and i am sure its making some of them take a second look at their preexisting values. This beats hell outa the 17 grand i gave to a spiritual path that turned out to be fraudulant. As an ex hobo i know for sure i am happiest when broke. I am a nut.
"Attention shoppers, we would like to remind you that we may be going to war with Iran at any time. If this is the case we will close and will not open until further notice. Thank you and have a nice day."
"Attention shoppers... the shelves are bare... have a nice day."
Soon there's not going to be much left of a can to kick down the road.
Denninger seems to think the number is actually $-175.6B for April, on account of FICA and Medicare. The table he posted, though, is completely worthless, with no labels and apparently random numbers. Is the real deficit $-175.6 Billion?
SS and Mediscare are in deficit and will continue to be.
These numbers will only get worse, substantially so.
Dunno why Douchinger is such a big fan of the paper notes of a government so bankrupt...
Hopium euphoria of the last couple of days makes me very, very happy. It increases the probability of robots going berserk in the face of any major bad news.
Spending up.....tax income down.....
sounds like a potential repeat of Reagan's imperial circle.....demand for dollars
except of course funding is not coming from overseas this time......it's coming from the FR.
Clark Howard for Secretary of the Treasury
Don't you mean Clark Kent?
I've found that the official deficit numbers are always lower than the increase in the national debt over any given period. It might be some "off the books" type of thing, but if you look at the increase in the debt in any given year and compare it to the official deficit for that same fiscal year that the increase in the debt will be substantially higher.
So... I thought I'd take a look at the "debt to the penny" numbers for April 2010 and came up with:
http://www.treasurydirect.gov/NP/NPGateway
$12,948,738,915,856.86 U.S. debt 4-30-10
-$12,764,878,911,618.18 U.S. debt 4-1-10
= $183,860,004,238.68 increase in the U.S. debt in April 2010
That, of course, is a little over $100,000,000,000 higher than the official April 2010 deficit numbers.
I believe I read that we're still buying on a predicted deficit that was higher than has been the case so far and higher than the recently revised downward estimated fy deficit. That probably makes sense to borrow while the gettin's good. It worked well for Ford.
But still...
Not to worry! There'll be jobs for everyone cleaning up the beaches in LA, MS, AL, FL, TX
After the census is over, we can put all those guys to work counting rocks. We really need to know how many rocks there are.
and maybe SC, NC, VA, NJ, NY if BP has no luck "trying" domes in various sizes, shapes and colors.
Those workers will be brought in from Mexico just like after Katrina.
Shit, I better buy my Macbook pro now before January. Which is better. 15" or 17"?
Guess those millions of Americans sitting at home and consuming wasn't good enough to light up those tax receipts! Our service/consumerist utopia was designed to encourage shopping, importing and knowledge-based work like party planning and reality show viewing. I think we deserve a round of self-congratulations for how hard we've all shopped this past year!
Buenos Dias Senores y Senoras, welcome to the banana republic of the Estados Unidos...
+1
Yup, a banana republic without any freakin' bananas..
Sooner or later the market will suck in the greedy suckers and the big banks can unload and reverse, then we can go down. So urge your neighbors to hurry up and buy some stocks, lets get this over with.
We are subprime...we're maxing the credit card now w/ teaser 0% interest rates to pay for everything including interest but the fun of the game is nobody knows the reset date. Most likely it will come at the least convenient time.
mother of god, will my kid ever earn a dime she is allowed to keep?
Yes, the real question is where does this end? Yes, financial calamity is obvious, who knows what form, does it really matter? The real question is what world do we leave to our children? Those who are owed the unpayable amounts will not be happy when they are stiffed. Those owing the unpayable amounts will not pay, they know this is not of their doing.
For this not end up in a major war and incalculable human suffering will take a miracle. It is the work of satan himself.
sschu
Don't talk about debt and usury that way, it's antisemitic
Wave your hand in the air like ya just don't care.......
who cares? it's all monopoly money now anyway.
sschu...I've always thought I'm agnostic but I think I'm starting to believe in the devil.
+100000
The welfare state has just moved into the fast lane. The spending explosion (Medicare up 39.4%) means a wealth transfer to a degree never experienced in history. The medical industry, pharmaceuticals, trial lawyers, Lieberman’s insurance industry, the investment bankers, minority rights advocates, welfare-subsidized corporations and all the rest are safely on board the accelerating gravy train. The taxpayer, of course, gets the bill.
For instance, Obama on February 4, 2009 signed legislation that allowed health insurance coverage for about 7 million children through the State Children's Health Insurance Program (CHIP) and allowed an additional 4 million to sign up.
He called it a “first-step” in providing coverage for all Americans.
"The way I see it, providing coverage to 11 million children through CHIP is a down payment on my commitment to cover every single American," Obama said at a White House bill-signing ceremony (MSNBC).
In 2007, according to USA Today, the state-federal health care program for the poor surpassed education as the biggest item in state budgets, while at the same time state tax growth was slowing and the numbers of the uninsured and medical costs were rising.
Also, Medicaid has shifted (hidden) many of its costs into Medicare, especially into the recent Medicare prescription-drug benefit program.
Medicaid and the related CHIP are state-run health insurance plans for the poor, including new signups crossing the borders. States, according to USA Today, in 2007 were paying 43% of the cost. The federal government pays the rest. Medicaid pays nursing home costs for seniors who have exhausted their savings (or never had any), including the newly arrived elderly parents of recent immigrants.
“Efforts to cover the uninsured. States have won federal approval to expand coverage to groups that don't normally qualify for Medicaid…These high-profile efforts to reduce the uninsured population rely heavily on the federal government paying costs through the Medicaid and children's health programs…” -- USA Today
http://www.usatoday.com/news/washington/2007-10-08-medicaid_N.htm
And this is just a nickel on top of the multi-trillion dollar iceberg...
I work in that biz, just got this email today:
Projected Medicaid Expansion and Costs: 2014 - 2019
Net Changes in enrollment under Medicaid expansion*
2014
2016
2018
2019
Adults without dependent children
1,881,240
10,876,890
13,051,230
13,178,700
Parents
446,050
2,578,930
3,094,490
3,124,740
Children**
18,080
104,530
125,440
126,680
Total
2,345,370
13,560,350
16,271,160
16,430,120
Expansion costs (in millions of dollars)
Total
$11,745
$75,575
$100,935
$107,525
Federal
$11,570
$74,455
$93,610
$98,690
State
$175
$1,120
$7,325
$8,835
Effective state share***
1.5%
1.5%
7.3%
8.2%
*Enrollment figures represent changes in average monthly caseload in each year relative to what coverage would have been under prior law in that year.
**Changes in enrollment of children under the new poverty threshold is net of the effect of the enrollment of already eligible children due to greater outreach under the new legislation, and the shift of some children with their families to other insurance coverage status. This effect will vary across states.
***States will receive the current federal match rate for coverage of children and parents who would have been eligible under current eligibility standards. The state share for the newly eligible adults rises to 10% in 2020 and stays at that level in subsequent years.
Source: UnitedHealth Center for Health Reform & Modernization
This is the most terrifying piece of information that I’ve ever seen. This is the purposeful destruction of the American way of life and I do mean purposeful… because of the late night passage of the healthcare bill, the purchase of politicians and of an administration in a move to destroy the middle class of America and transfer the wealth, not to the needy, but to the investment bankers—because everybody’s going to be reduced to needy status now.
It is long past time to suggest that these people who would endanger our system of government in this way are either mistaken or have good intentions. They are simply engaged in treachery; in a criminal attack on the United States of America.
On purpose!
JR, i thought you knew!
Christ - look at the NYSE advance / decline today. 6000 up and 100 down. Just buy anything!
Seriously, how could Medicare grow 40% in a single year? Is there a timing issue, or a difference in how Medicare spending is accounted for? I could easily believe 10%, but 40%, how????
The transition expenses from the healthcare bill are housed under the CMS budget. This is politically intentional, as cuts to Medicare are politically unpopular with old people (in aggregate).
This has deflation and future gov't funded projects cancellation written all over it. It would appear Ben and Timmay are trying desperately to devalue the US currency knowing full well that a serious bout of deflation is building.
War longs seem like a good call, atm, sschu. The frailty and overwhelming stupidity of humanity as a whole is astounding at times.
To be fair, part of the problem is what Galbraith the Younger deemed the "sovereign debt death spiral"--we've been demanding both low taxes and increased benefits from our governments; and our governments, incredibly, listened and kicked the can down the road for decades. It's all coming to a head now, and it's a good thing in part, b/c the sooner it gets dealt with, the sooner we can actually create a more sustainable model. Krugman was obviously smoking that rock and obviously wrote off Papa Galbraith's warnings about "conventional wisdom" to think you could put off deficits this big--unemployment's a massive problem, yes, but what if (as it seems to be) many of these unemployed are structurally unemployed? We don't have the money to New Deal it (THE LIQUIDITY IS A LIE) away, so we have to eat this unemployment until these folks die off/retrain themselves.
So: what to do? Raise taxes, slash spending, end the wars in Iraq and AfPak, and retool until the next big war breaks out in 2-5 years. It's going to happen, so why not get everything in place now? I'd take a shower to cleanse such filthy thoughts away, but what's the point--it doesn't change reality.
No...we should repudiate the debt.
Why should we suffer austerity required to pay back illegitimate debts to usurers?
I'm sure the PIIGS are thinking the same thing right now.
Just connecting the sovereign bond dots, Greece is actually not the story, it's Portugal. If austerity comes hammering down, Brazil is going to look awfully nice. I think the likelihood of a Portuguese default by way of failing to meet the austerity conditions is actually more likely than Greece. And if Portugal goes, so goes the rest. Ireland is massively exposed in Portugal. Ireland is the real killswitch.
Makes no sense not buying here. Inflation is obviously going to run this higher along with strong fundamentals. Gold is telling you that and all the economic numbers are telling you that there is strength.
"Makes no sense not buying here."
You are speaking on gold right? Oh wait, then I read the rest of your comment. Hairy, Hairy, Hairy....Shut up! Your ass has been handed to you. Do you even know what inflation implies? It means you are running on a treadmill. This for a carrot. Go eat a steak!
Don't you have somewhere to be? Like Yahoo?
THAT is the best you could manage Harry?
Record deficit.
Sell gold!!
Down $11 since this story hit.
wtf
2 day run of $50 will have some profit takers in it just for the trade. Technicals haven't changed one bit. Thru $1250 tomorrow, Silver Thru $20
Thanks Harry.
Well, when you tell the small business owners that they will be forced to shoulder additional tax and health care costs, you tell the over $250,000 annually crowd that they will have to pay more taxes and you tell the welfare crowd that there is more, what do you expect? Where is the incentive to WORK?
I think this is what the Greeks are going through...Why work when you can riot?
As a 100% disabled war veteran I wonder what your definition of a welfare queen is? Perhaps I should hit the bricks since I am the root of all fiscal public sector false philanthropy. Yes? After all, why should I work when I no longer can since my future earning capacity was eaten up by state action. When you have forfeited 100% of your future earning capacity only to realize that all of the promises made on your behalf were all just a joke, trick & lie because the ability to freely pursue their vocation cannot be impinged by you and those others that were stupid enough to defended and make that possible then come and talk to me about this one dear ZH associate. Remember, society is a whole. (close enough for cripple work) Peace
http://www.youtube.com/watch?v=vPoEA43cqKc
As a vet myself, I don't think anyone here is referring to disabled vets as being welfare recipients. The ones being referred to here are the leeches who refuse to go to work and leech the system. There are millions upon millions out there doing it. I know people who have never worked one day of their life getting welfare, and never tried to find a job. I know drug addicts getting it. I know food stamp recipients with better cars than half my neighbors. People have to take a drug test to get a job, why aren't welfare recipients tested and required to be drug free to get aid? There are many more in this country than I know, for sure abusing the system.
But on the same token, I know a guy who was in the military for 2yrs and got put out, and suddenly he is a diabled vet with heart problems, hip problems, and CPOD. Not because he got this serving his country, but because he weighs 350lbs and smoked like a chimney. Yet, he uses the VA for all his medical, even though he has insurance at work. He makes 50K+ a year to sit on his rear and act like he is in charge of people, and still gets a check from the government for his so called disability. If you are able to work, then you shouldn't be getting disability benefits IMO. His disabilites are not the result of his minicule service in the military. The only thing disabled about this scenario is the fact that he is abusing the system like many others.
folks tend to forget qualification until after the fact when it becomes;"Wait 'till next time..... we'll catch you up then". The total suckers play, just ask the clients of GS and like minded institutions... and I am sure holds true for Janice as well who is someone that appears to know this deal... From both sides of that particular coin.
Guess you should have gone to Canada.
You seem to be able to string together a complete thought on the internet, why don't you get a job where you can work at a computer, and perhaps telecommute? Oh, because that would cut off your welfare.
It's not your fault, it is the system. It makes welfare queens out of everyone it touches. Don't think that you are immune just because you served in the military, the world's largest welfare organization.
Tried that. After being exposed to Sarin, Cyclosarin and Mustard Gas demolishing these weapons like conventional weapons and going through the process of slowly losing my while & gray brain matter there aren't many things I can do for the 10 or so hours each week that I am actually available. How would moving to Canada and abandoning my country fix any of that? (Even with all my love of Vancouver, the rest of B.C, Alberta generally and the warm and heartfelt invitations I have received from friends there)
Besides, the military isn't the greatest welfare organization in America. That distinction belongs to finance. What the military is, in essence, is societies pooper scooper's. It is our job to scrape up the crap produced by this very finance centric system and produce more that can then be putted or called for ever greater bonuses that can then be cried over on how a portion of that goes to provide showers to the pooper scooper's, or take them and the rest of society to the showers. If you're gonna engage in guesswork I suggest you get a better clue first...
http://www.youtube.com/watch?v=yOgHBMujTCw
I wouldn't go back now for any amount of money (or anything else) - Miles Kendig
Tmosley you are correct and a whole lot of military manufacturing corpys would agree. As a past service member i must say the pay was poor and the treatment shoddy. Tossed aside at end of use, sent to the combat theater repeatedly is no way to treat a citizen. Personally i never got sent to combat , but enuf friends did.
to send our men to die for the profit of the few, the elite, is treachery and treason to our men , country and ideals.
Aaaaannnd the hits just keep on rolling
More debt to be issued, Obama tells Bernanke to print more Billions for oil cleanup in Gulf
http://blog.al.com/live/2010/05/white_house_proposes_new_gulf.html
Welfare doesn't die, it multiplies. BP and TransOcean should be paying for this mess not the taxpayer.
The White House is asking Congress to take up a $118 million oil spill response package for cleanup… Also, the Obama administration is asking Congress to raise a per-barrel tax on oil that goes toward the Oil Spill Liability Trust Fund, which helps pay for clean-up and damages associated with an oil spill. That tax — which has already been proposed in Congress, too — would go from 8 cents per barrel to 9 cents per barrel beginning this year. ~ McClatchy Newspapers May 12, 2010
The U.S. government should take all the assets of British Petroleum and all the other companies involved in this negligent oil spill and let them go bankrupt, if necessary. There wasn’t one U.S. citizen that caused the BP spill.
The scandal is an Obama Administration failure. It allowed one agency, the Interior Department, to not only oversee the offshore drilling safety of the oil company but, in conflict, to handle U.S. Treasury revenue generation from it as well. It’s too late for Interior Secretary Ken Salazar to propose “strong independence” by splitting this apart now. People need to be fired and charged: they are the guilty.
The floor of the Gulf of Mexico is filled with potential oil production. Everywhere you punch a hole, you get oil. BP, using a floating oil rig atop the Gulf, drilled a hole a mile down and, then, went deeper into the soil to get oil. To even think that can be done without some protection is somebody’s fault.
The question from the Interior Department that was not asked: What happens if there is a break in the pipe down there? And if there is no answer forthcoming, there should be no permission given to drill. Before one penny of taxpayer money is used on this spill, companies have to be criminally charged and their assets used to correct the damage.
Was it Mrs. Jones of Cleveland, Ohio, who did this? No? Then why does she have to pay?
The oil companies are synonymous with big banks, and that spells filthy rich. That’s why we went to war in Iraq. If was not for America. Is gasoline cheaper now? No. It’s the oil companies that are richer.
If the Obama Administration will not take action in a crisis such as this, demand a solution to fix it, punish the guilty and make the guilty pay, then that Administration is punishing the innocent. And, at this point, one would have to say it is being done on purpose.
http://www.mcclatchydc.com/2010/05/12/94022/white-houses-oil-spill-response.html
Yes, the economy must be terrible. CSCO just knocked it out of the park and is seeing solid/strong demand. Whole Foods, a discretionary stock if there ever was one, raised guidance after a unbelievable Q. Yes, things are really awful.
good try.
And CAT, and HOG.....
You are biting my stocks you focker. Go sling Apple or something...
By those kinds of assumptions Zimbabwe must be a freaking paradise.
"raised guidance after a unbelievable Q."
Well if it's unbelievable then I guess I just won't believe it.
CSCO's earnings were squarely "as expected, " certainly not a blow out. Whole Foods did a little better, attributing its earnings results to its leaner operations. Good for them. Others reporting in were not so lucky, as earnings YoY were down for many companies on lower revenues YoY. I think you might be just a little bit too much in the "Glass Half Full" department for us Harry.
Not sure what is in your glass Harry but Whole Foods is closing non-performing stores to reduce fixed overhead costs.
A business cannot shrink itself into prosperity.
Hey Harry, I have some stocks I want to sell you. The company doesn't make anything useful, and it's in debt up to its eyeballs, pays no dividend. It also declared bankruptcy last year, and will probably do it again next year.
But the fundamentals are solid! It's a screaming buy!
Barf,
I must confess I am seriously thinking of moving to Australia with the rest of the Brits.Aint nothing free about a controlled stock market and punished middle class.
Id like to say (as the bumper stickers say on OZ) - "piss off we're FULL'
But If you speak English and have reasonable table manners then OK come on over. Just remember NO GUNS allowed. Thats some awesome Credit Card the US Government is using, you all should be so proud. When's the due date for payment and are they getting free air miles or Toaster ovens on the spend ?
I'd rather be with the BRICs than the Brits. Not much left with the Brits after we usurp from BP - if that ever happens.
How convenient, the AP runs the budget deficit story 2hr after the market closes when no one is looking
Guarantee the headline will disappear by tomorrow morning
Is the AP on the FED payroll too? It sure seems like it with the stories they run, compared to the important ones they omit.
Someone with a one sided story on taxes ? Then PSTFU (please shut the fuck up).
If you don't like taxes, quantify your solution in terms of at least a 1 year horizon. Like this: Let's not let the tax cuts expire because on the spending side xxxx and xxxx cuts will make up the difference next year. For example, eleminate the jobs of half the SEC and other bloated Finreg idiots - let's see some people fired there from all the scandals and blatant ineptitude of the past few years (Madoff, porn, etc). I want to see an idiot perp walk a 1/2 mile long going down some street in D.C.
Someone told Larry Kudlow the same thing recently. If all you do is yap in a high pitch about high taxes and don't have any definitive, smart offsetting spending cuts, then PSTFU...
Or, screw it. Move to D.C. and become a lobbyist. Shit, how about for the Chinese toxic food industry: "My clients shit is toxic, Congressman, yes, but look at the shit we make here, its pretty damn shitty too".
But I digress..
Updated DOW charts showing recent buying support:
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com
The best way to fight inflation is with mass unemployment.....Reset
Amazing how expenditures go up, receipts go down, and the band plays on. (which is a great movie btw).
You have to research to get over a scarcity issue by finding alternatives, or by researching and developing the technological marvels that will enable us to find new sources. What are the sources within our grasp within a few decades? Moon, Mars, Jupiter, jupiter's moons, and the asteroid belt.
You can't throw more money at monetarists and think your real scracity issues will be solved. You actually have to DO IT, in order for your scarcity issues to be solved. But we can't throw any money at that, we can't afford to print money for real concerns.
But when we start getting to real scarcity issues like the Chris Martensen talks about, we'll have a problem, and have squandered our time to get past them. But we still have time, not much, but we still have it.
But in monetarism, scarcity = money. So mankind's whole future rests on finding alternatives to the scarcity out there, meanwhile monetarism can only limp along if it makes everything scarce. We'll have to decide which way is better, or else everything will be scarce, because of poor planning. But lets just keep this game going, print more money, and have it NOT trickled down from the banksters to all of us.
If human beings want to survive, monetarism must end.
The reason we have budget deficits is because our monetary system necessitates it. Want to make it unnecessary, switch the system from the British imperialist monetary system, BACK TO, the American Credit System.
All the talk of budget cuts in monetary world is useless, as any gain will be squandered by the way the monetarists operate. You need to switch the system, to get out of the game. You can't cut spending, and do it. These deficits are proof positive we need to SWITCH, not cut everything.