CBO Hikes 2012 Budget Deficit Forecast By $97 Billion In One Month, Sees $1.17 Trillion In Funding Shortfall

Tyler Durden's picture

What a difference a month makes: back on February 7, the CBO released its first forecast for the 2012 budget deficit. The number then? $1.08 trillion. Just over a month later, the CBO has released its amended budget deficit. The bottom line this time around: an increase of just under $100 billion, or $1.171 trillion. Since this number is still about $150 billion less than the President's own scoring, or $1.33 trillion, expect even more revisions. And why not: this is simply debt that nobody will ever repay, and in exchange the money, which is finally flowing through the bottom line at least to the banks (JPM shareholders thank the US Treasury) will proceed to pad if not the middle class, then certainly banker bonuses.But not all is bad news: by 2022, the CBO, which has a pristine track record of predicting one decade into the future, sees a $186 billion reduction in total deficits compared to January. Let's not forget that b then Greece will have negative debt/GDP ratio.

Here is the revised number.


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Tsar Pointless's picture

This should be enough to gap the S&P over the magical 1400 mark, fer shur!

trav7777's picture

Obama has succeeded in cutting the deficit, as promised.  He cut it a full -600 to -1000 billion

Whatta's picture

 I guess this is why the Cronycrats in DC so longer see the need to waste precious time and $US on a budget...

...just pass shitbills in congress, pay for them with shitbills from treasury funded by a few lone tax dollars and lotsa Fed red.

Sudden Debt's picture

Obama cut the forecasted 2012 deficit by 20 trillion down to only 1.3 or 1.4 or 1.5 whatever trillion.
Give that Nobel man a medal!

Sudden Debt's picture

Yep, time to take on that 10th loan and buy some stocks!

Zero Govt's picture

Bumma said he wasn't going to leave unrepayable debt to our kids

..the socialist slacker better get his worthless arse off the golf course then and start working nights

Buck Johnson's picture

When this whole ponzi falls apart,  it will tear the US apart.

mp95bravo11208's picture

Sometimes I get the feeling they are building huge arks in China with all of the missing money.  LOL  Ever see that movie?  The billions just keep piling up and up and up.  That at least until we crash and have that 'fundamental change' Obama is trying for that the rest of us will fight against.

Manthong's picture

They pull the numbers out from dark, warm, moist, sunless places.

DoChenRollingBearing's picture

Without doubt, + 1

This will easily be $1.5 trillion even if they use their own numbers by year's end.

CTRL P, CTRL P, CTRL P to infinity!

Pool Shark's picture



And we'll all get a ringside seat for the next debt-ceiling raising spectacle which now should arrive just in time for the November election...


fourchan's picture

"i'll gladly pay you tomorrow for a hamburger i can eat today."


amerika is Wimpy, as fuck!

LawsofPhysics's picture

Jamie's got this tab, relax.

Yen Cross's picture

I can't wait for march 23rd. The real participation %, of Greek bonds. That was extended by ISDA from the original March 20th date!

fonzannoon's picture

People are funny on here with these " I can't wait for X date" as though anything will change. No offense but how many dates are we going to watch go by...

Yen Cross's picture

Go ahead, and take the leap of faith my friend!

Sudden Debt's picture

Every single one but my birthday!

goldfreak's picture

612 for 2013  LOL!!!!!!!!

Kiwi Pete's picture

They're assuming Ron Paul gets in and the Congress has a come to Jesus epiphany and stop spending. It could happen!

Tsar Pointless's picture

Less than five whole points until S&P 1400, bitchez!

Can she do it before market close today?

Oooh, the suspense - I can no handle it!

TradingJoe's picture

Volume is not impressive! How's "buying"?:))

In other "news", Ferrari dealerships preparing for a RUN! :)))

lizzy36's picture

Deficits to get monetized by the Fed as primary dealers act as intermediary, collect the QE commission. and use the money to pay out dividends to shareholder and/or buy back stocks.

Everyone wins....except for the 80% of yanks who don't own stocks. Oh well, the bottom 80% are really only necessary to transfer wealth to the upper 20% anyway.

TruthInSunshine's picture

There are a lot of wealthy people (in the upper 1%, let alone 5%) that have pared their exposure to equities greatly or shed equities period.

Many of these individuals received letters from their former hedge fund managers (many large ones, at that, with tens of billions under management), whereby the el head honcho returned their funds, with a note saying they were making a personal decision - after 20 or 30 years - to step out of a mined field.

Oh well. C'est la vie.

earleflorida's picture

nature has a funny way of telegraphing the future --- the top of the food chain cannot survive on predatory feeding when the habitat is virtually non-existent ,... thus having run its course

ah yes,... the circle of life

Tsunami Effect's picture

No kidding.  They are printing money everywhere.  What POS blog this is for actually making any money in the market.  You should just shut it down at this point dummies.

slewie the pi-rat's picture

everything is bullish today

the "market" is celebrating the crystal-clear empirical fact that if you inject 300+ Bil EUR into the bankstering system in week1, prices go fuking upskie in week2

more punch, BiCheZ?

Yen Cross's picture

 That reminds me Slewie. Those huge 90 day s/t swaps eur/usd are being tendered. Thank God I had trailing stops on my cross shorts last night. I caught a little in early Europe on that dip, just before the world went long usd/jpy before the 10 year auction today!

slewie the pi-rat's picture

yup.   my angle after the shenanigans last week:  the EU banks needing to come up w/ some u$ds for their liquidity swaps for daze of future, now passed

so i thought dollar up, EUR & CHF down

they're not gonna buy this stuff back at too big a currency discount, tho!  mercy!

benzelbub rings the cash register, again!  those banks may be on their knees, here, Y/C!  he may wring a zombie or badBank out, just for good luck!  L0L!!!

Yen Cross's picture

Keep it real Slewie! C ya in Europe! +1

  For that eur/chf trade referrence. There are 25 yards of stops just under the 120.0 SNB floor. The SNB can print.

gaoptimize's picture

I think the more immediate consequence of deficits will be whether or not another debt cieling breach will be noticable on the horizon when Ron Paul arrives in Tampa, and whether that breach occurs before or after the election.  If it is an issue at the convention, Ron Paul walks out the convention with the most political capital, nominee or not, and could be percieved as the leader of the Rupublican party, or some other.

Debugas's picture

now lets think about a world where government takes no taxes but simply prints money to fund public sector jobs.

Will it cause hyperinflation ? Depends on what kind of jobs the government is going to fund.


ivars's picture

Today is exactly one year since my long term silver spot price prediction chart was created and published on March 13th, 2011, here:


Disregard most of the text, please, except advice for silver buying in the end:

[quote]So, keep silver, but You can buy or repurchase it cheaper during 2011-early 2012 than now. [/quote]

I will take the opportunity given by this anniversary to analyze the charts accuracy during and over one year.

One year ago, on Friday, March 11, 2011, Silver closing spot price was 35,9USD/Oz. In my chart on March 13,2011 I predicted that Silver closing spot price on March 13th, 2012 will be 32,5 USD/oz. Today it is 33,2 as I write. So the accuracy of this END-to-END prediction over one year period is about 2 %.

Here You can see the shorter term part of the same chart ( red color) with comparison to actual silver spot prices over the year period. I would like to suggest what would have been stacker actions he/she would have followed the chart:


1) He/she  would never had bought silver above 32,5 USD but waited until it falls below it-except if he wanted to make short term profit on the peaks and troughs in April and August-September by going long before the peak and short at or after the peak.

2) He/she would have bought like hell in October 2011 when closing price was in the range 30-32

3) He/she would have been happily surprised by drop in December -January 2012 and buying with all his money when price went even below 30 USD

4) He/she would have never fallen into traps of April , August-September, October -November and February 2012 excitement and would not have bought above 32,5 -sold may be to make profit and bough back later.

Of course, no one is able to believe in any chart so much, especially from an unknown source, but some reliance on it after it had proved quite accurate ( don't by above 32,5) would have helped after September crash.

But now the scary part comes to test the chart- the fast raise and drop in silver which according to original chart should start already on April 1st 2012, and reach peak by October 2012, OR, according to the same chart that was little bit tuned (green)  in October 17th, 2011- slower and later ( from mid June 2012, with a real sharp rise starting mid September, double top November-December 2012).


From both charts, I would say start to believe its going to hit 60-70 in 2012  once its over 45-50  But there will be a crash again, so buying above 45-50 without intent to sell at the peak is not advisable.

Can't wait to see what will happen. I do not trade, but have bought some physical gold to test own charting. If I am as lucky as usual in financial matters, I will loose money. Hope that helps.

All my prediction charts are in one place here:


Tsar Pointless's picture

Damn! Four points shy of 1400.

Oh, well. Tomorrow, tomorrow - there's always tomorrow. It's only a day away.

Aaaaand bullish!

SheepDog-One's picture

Only FIVE more trading days like today until all-time full retard bubble tops are blown thru! And we're in a DEPRESSION to boot! Can ya believe it?? 

Tsunami Effect's picture

Yes i can.  The money "printing" is unstopable now.  It is the only thing that "works."  The end game is the global government, global currency, global bank.  But f@#$ this site sucks for making any money in the market.  

Tsar Pointless's picture

Yes, I can believe it.

I can believe it, because I am seeing it.

And, seeing is believing. Everything else is faith-based.

Back to cleaning my house. Literally, not figuratively.

dwdollar's picture

The stock market making new highs and official unemployment still above 8.0%. True banana republic status...

I will not be surprised when they stop reporting unemployment altogether. Sorry, unemployment is no longer relevant. Oh yeah, they will try to play that card. Wait and see.

Tsunami Effect's picture

No it will go down.  The Govt. pencil pushers are scared s$%tless that they might have to work for Romney.  No way.  Every single govt. loser has one goal this year, get Obummer elected.  Doesn't matter at all if the numbers don't make any sense.... but fudge early and fudge often!!!

sschu's picture

Income taxes go from $1,159 to $2,849 in 10 years, 145% increase.  

The people are going to agree to give the federal government $3T in taxes.

Yea sure.


Raskolnikoff's picture

and that takes for granted earning power remains stable. What will happen is the government will take a bigger percentage of materially shrinking slices of smaller pies. So, we'll all end up slaves of a pre-1990's type Chinese government...cannibalism here we come!

SheepDog-One's picture

OH so thats why equities are charging higher like retards with hockey helmets on....has to be.

Yen Cross's picture

 Love that analogy SheepDog. +1

John Law Lives's picture

Simply amazing.  The Fed has given the market the green light as it will proactively keep ZIRP around.  Give the masses endless sports and other forms of entertainment and ZIRP4EVA and rob them blind while they have a smile on their faces.  What a concept.

100% FUBAR.

acceptancetake's picture

These are the deficits - WHICH ARE BAD ENOUGH - but doesn't include the total increase which is far worse.  I know, I've studied it and written an ebook about the U.S. debt crisis and its effects on the dollar.  You read my ebook for free at acceptancetake.com