U.S. Rakes Up Nearly $300 Billion Deficit In First Two Months Of Fiscal 2013

Tyler Durden's picture

To paraphrase Tim Geinter: "Risk of the Fed ever ending its monetization? No risk of that." Why? Because as the FMS just reported, the February budget deficit was $172 billion, up $52 billion from a month ago, and $35 billion from a year ago. In brief: in the first two months of Fiscal 2013, the US accumulated a $292 billion budget deficit (compared to $236 billion a year ago), a number which is simply scary when annualized. What does this mean? That as long as the Treasury runs $1+ trillion budget deficit, the Fed will never, ever be allowed to stop monetizing, especially with China and the other legacy foreign borrowers just saying nein. Which in turn means that it will now be in the Fed's favor to paint the economy with uglier colors (recall that the Fed now needs unemployment deterioration to have infinite free monetization reign). Does this mean that going over the Cliff is now an absolute certainty.


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CClarity's picture

"I don't want to scare people . . . " - Ben Bernanke on 12/12/12    . . . but what we're doing isn't working and we don't know what else to do!  /sarc off

stocktivity's picture

It's not even All Bullshit anymore....it's Bullshit, Horseshit, Cowshit, Dogshit, Birdshit, Aardvarkshit.....Fuck you Bernanke!!!

vast-dom's picture

The Cliff was coined by Bernankzi in order to justify any and all central planning; ie direct abberant and perverted gov meddling. The Cliff meme is there for us to have something to go off of, 100%.

1eyedman's picture

according to wiki, august 2010 was first reference to f.c., but i dont see the term.  feb 2012 bernanke 'popularized' the term using the phrase in testimony to congress....  he invented his own cover! so clever that one

trav777's picture

This is ALL clearly George W. Busch's fault

boattrash's picture

Damn Trav, Great to see ya back on here. I've been a bit worried that they might have had you in a camp. Take care and keep it up. Sincerely, Boattrash

economics9698's picture

Speaking of Ben here is a great ammo site.  I love it!


TruthInSunshine's picture

Today was the day that blew Joey Weisenthal's mind, Scarecrow from Batman style.

His absolute hero and idol, even more so than Paul "When Mars Attacks" Krugman, one Ben Printus Maximus Bernankus, gave "the markets" all the charlatans of fiat conjuring have got, and the 19 algo-bots that are actively trading "the markets" didn't get boners.

azzhatter's picture

A lot of expenses held back before the election, now time to pay the bills.

DrDinkus's picture

we are going over the cliff. then barry can ride in like a white (black?) knight and save the day with lower taxes for all the american people!

EscapeKey's picture

Going over the cliff?

We're Wile E Coyota, way past the edge, only thing saving us for the moment is not realizing it.

SheepDog-One's picture

'Lower taxes'? Hell we're under a 50%+ slave tax in anyones book.....and the unemployed dont need tax cuts, doesnt mean shit to them.

In reality, no ones coming to 'save the day' now, its over the cliff and say buh-bye to pensions and 401K's and all the rest which will be Corzined.

Zap Powerz's picture

So would now be a good time to cash out my 401(k) and use it to buy PMs?

Chupacabra-322's picture

@ Zap Powerz,

Abso fucking lutely!!!  Buy PM's, guns, ammo, water and eFoodsDirect.com.


inevitablecollapse's picture

you know, i really have been considering this (i'm relatively young @ 33) and don't plan on leaning on a 401k only for 'retirement' - instead of racking up credit card debit (i have none) and using what small amount of cash is leftover at the end of the month for beans, bullets and bullion, why not just go all out and put that 401k to good use...

Chupacabra-322's picture

@ inevitablecollapse,

You've answered your own dilemma with your screen name.  My advice, he who hesitates, masterbates.  Keep stacking.  You can start here.


VonManstein's picture

Today is gonna cause panic amongst all these Tom Demark traders (whoever that is) I follow one who is really good.. untill hes not... like today

Panic sets in things will really start moving down in an accelerated manner. QE4 Could be a major catalyst for loss of confidence in the system, a game changer.

Hold onto you seats folks

Squid Vicious's picture

don't worry they have 10 minutes left to jam the Spooz green...and probably the Dow too

lolmao500's picture

Get rid of the debt ceiling and that'll cause panic.

imbrbing's picture

I have been "hangin on to my seat" here damn long enough, white knuckle even. This won't be over till they decide so. I think I am going back to playing angry birds on my icrap :)

Do sheep know how to panic? phhht. They panic when their phone is "searching for service", but not until then. When this thing blows most the panic will be AFTER the fact. I have been

in a mild form of panic for the last 2+ years when I decided to take this seriously. I am glad I was given the time to have some for-sight here to save me from the more dangerous last minute panic.

TruthInSunshine's picture

hmmmmm.... <rubbing beard if I had one>

Something fishy is going on....


phoolish's picture

Over 50% Borrowed ... Go Ben Go.

Seasmoke's picture

so we are now at ........very bad , is very good

Squid Vicious's picture

Hopefully there is a special place in hell reserved for Timmah...

ZeroAvatar's picture

I guess I'll be residing in 'Naraka', then.


(I like to n'rak ' n'roll)

SheepDog-One's picture

Squid, I believe the term MIT PHD's use is 'Gooderer'

Nostradamus's picture

November instead of February perhaps?

BLOTTO's picture

Queue in X-factor event...


Whats it going to be...

war? disease? oil spill?

earthquake? volcano? terrorist attack?

massive discovery? that alternates life as we know it?...

alien (faked) invasion?


My guess - something we cant chart, research or look on a graph.



Seasmoke's picture

shutdown the internet

Zap Powerz's picture

The one variable the PTB didnt plan on was the internet and the ability for people to figure out what is being done to them.

The internet is the bane of the Elite because we use it to gain knowledge about their plans.

You nailed it when you said "shut down the internet."

The day I try to log on and there is no more internet will be the day I stop going to work, paying my bills and participating in the social contract I have been forced to participate in.  From then on its going to be survival mode.

I will miss ZH.

imbrbing's picture

Bingo, they never took account for the interwebs in their planning, can you imagine if all this was going on and all we had was mainstream, they would have us by the balls, OMG! I have been saying this for

years, and when I do, most if not all get a weird look on their face like....huh? And they act like if I get any info off the internet it must immediatly be dismissed, cause after all

it came from the internet. Most don't have any brains to discern. But for those that do the internet was a godsend. It took the <1% of us that care and gave us a tool.


After all the internet is just a shopping tool to by more icrap isn't it?

Zap Powerz's picture

My eyes would still be blind and my ears would still be deaf if it were not for the internet.

It's ironic that an electronic medium (the internet) that functions in 0's and 1's has liberated me from the proverbial matrix.  The internet is the red pill if you chose to take it.

Diogenes's picture

Ha ha ha it's the internet that is keeping everyone from going outside and doing anything. Once they got control of the net it was over. Now we all sit here doing nothing, thinking we are rebels. While the cops monitor every move we make.

ZeroAvatar's picture

I'm thinking the earthquake/volcano percentages are pretty high.

Mad Mohel's picture

Why even bother counting anymore? Billion, trillion meh. It's like the captain of the Titanic counting how many gallons of water the ship took on.

Flatchestynerdette's picture

But the ship went down....


Here? We're not even acknowledging that the boat has hit an iceberg. Everyone is still dancing.  I feel like I'm the only one who is facing reality. I've seen the iceberg. I've heard the rip. Even the captain is ignoring me.


What am I to do now? We're living in unreality.

Zap Powerz's picture

What are you to do now? Forget everyone else but your loved ones and GET ON THAT MOTHERFUCKING LIFE BOAT!!!!!

centerline's picture

There aren't any lifeboats.  We are all going swimming!  And the water is looking really cold.  So, sit down and have a drink.  Enjoy the moment.  Listen to the band and get your head in order.

Zap Powerz's picture

Then I will fashion me a life boat out of the dead floating bodies in the water.

centerline's picture

That's similar to my plan!  lol.

EscapeKey's picture

Perhaps they can solve it - much like Goldman Sachs a few years back - by moving the fiscal calender year 2 months forward and... oh shit, they still have to include Oct/Nov of next year...

markar's picture

Cue William Banzai with Geithner & Bernacke as Thelma & Louise

youngman's picture

Bernanke   "The fiscal cliff is already having significant effect on the economy, he says, pointing to sharp declines in various sentiment measures (I, II). He blames falling markets on the cliff as well. Falling? Should D.C. fail to avert large tax hikes and spending cuts, he suggests the Fed could add to its asset purchases"

I might be reading to much into his words...old Greenspan for me....but I think he just made a Freudian slip....the falling markets he sees is before the Fed has to come in and save the day and pump it up...he sees the selling pressure...but the Fed is buying it up....keeping the markets inflated... more fake in the fake markets.......hmmmmm

Confundido's picture

But, but...what about the 6.5% unemployment??? Bernanke just told us that if we reach that level, he will stop monetizing. And the unemployment rates has been decreasing...I am...confundido!

Flatchestynerdette's picture

You're not the only one. I'm getting more lost the more I read. All I want to know is WHEN are we going to slide into greece? when are the rating agencies going to down grade our debt? when is anything related to reality going to kick in?

thank you.

Zap Powerz's picture

Youre watching the wrong environmental landmarks to gain your bearings.

Stick to your map, your compass and landmarks that cant be manipulated.  Trust in your instincts.  Your instincts got you here (zero hedge) so theyre pretty good.  Just trust them.

ZeroAvatar's picture

Yeah, as I said before, if you're out at night and get a sudden urge to hide your heat signature, TRUST YOUR INSTINCTS!