The US "Budget Surplus" Miracle Is Over: $125 Billion Deficit In May

Tyler Durden's picture

One month ago we were pleasantly surprised to note that following 42 straight months of budget deficits, among them record ones, such as the ($231.7) billion recorded in February, the US finally managed to record its first budget surplus since September 2008. The number was a modest but positive $58 billion, although there was once again more than meets the eye. On May 7 we said that "without various temporal adjustments, the April surplus of $58 billion would have been completely netted out by the cumulative $57 billion in deficit time shifts." More importantly, we said, "In other words, enjoy the surplus while you can: for another 30 or so days." Sure enough, 30 days later, the number is out, and it is back to normality: the US recorded a deficit of $125 billion in May, on outlays of $305 billion and revenues of $181 billion. And so the "surplus" miracle is over.

Short-term deficit chart:

And longer-term. Note the lonely surplus outloer.

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CPL's picture

This is where it gets really strange isn't it?

transaccountin's picture

giving welfare to wallstreet aint cheap

surf0766's picture

giving welfare to anyone is wrong

Gringo Viejo's picture

"In politics, few talents are as richly rewarded as the ability to convince parasites that they are victims. Welfare states on both sides of the Atlantic have discovered that largesse to losers does not decrease their hostility to society, but only increases it. Far from producing gratitude, generosity is seen as an admission of guilt, and the reparations as inadequete compensation for injustices, leading to worsening behavior by the recipients."       .....Dr. Thomas Sowell

flacon's picture

It's nice to see Thomas Sowell quoted here. He has some great books on economics and the social implications of government over-reach. Look him up on Amazon for some of his work. 

surf0766's picture

He does present some great topics. I always enjoy listening to him speak.

walküre's picture

you're on someone's welfare right now.

surf0766's picture

And what welfare is that

Unprepared's picture

Why? Deficits don't matter, but surpluses do.

Zero Govt's picture

depends if you believe the numbers, any numbers Govt dishes out

this institution can lose $1 Trillion, never find it, never account for it, nobody gets sacked

cushiest job in the world, shame about the debt but all gravy trains come to an end

Sudden Debt's picture

Thank god the US isn't spain...

Zero Govt's picture

Tanzania is growing at 9% 

..no you're not

ElvisDog's picture

I've never been to the capital, but northern Tanzania, the Arusha area for instance, is really quite nice.

SokPOTUS's picture

Tanzania is doing *fine.*

mrktwtch2's picture

dont tell obama..he cant handle another bad number..lol

Coyote57's picture

Please, what is the alternative?; and don't say Romney.

flying dutchmen's picture

government are shit at allocating money.   cut goverment cut government.  it is going to have to come eventually.

nickt1y's picture

Two words ... supreme court. ABO anybody but Obamamama.

NotApplicable's picture

That's the same failed thinking that got Obummer in the seat.

Silly statists...

NotApplicable's picture

LOL, a.k.a. the "libertarian" who's never read a single word of Spooner, Mises, Rothbard, or any other libertarian thinker.

Just another incoherent minarchist who substitutes beliefs for well-thought out ideological stances (as those are hard, and require precious time that politicos could better use to further their power).

valley chick's picture

Must be bullish!!! Look at that rally today!

vh070's picture

That's just the pump and dump play to catch any suckers. 

ZerOhead's picture

Late breaking news...

 

(Reuters) - Failing a successful euro zone bailout and the resultant complete capitulation of Portugal, Ireland, Greece, Spain and Italy, PIGSpIt nations will be asked to kindly transfer all sovereign assets to the ECB, to in turn be retransferred to the EBC (European Banking Cabal), and to kindly turn off the lights and exit the Euro.

 Euro zone finance ministers met in Luxembourg to discuss how to create a new currency union for the delinquent nations.

"We have already started working on the design of the new bank notes with the Commission, the European Central Bank and the International Monetary Fund," Spanish Economy Minister Luis de Guindos told reporters as he arrived for the talks. "We will present the proofs of our new currency, the 'Peasanto' in the next few days."

 

lasvegaspersona's picture

and tax receipts will dribble in from now til next April. Of course tax receipts are passe, financial repression/ inflation is the new funding scheme...they don't need no stinkin tax receipts!!

asteroids's picture

Just assume any government generated stat is a lie. You won't be surprised. Watch the bond market instead. They are rarely fooled.

Panafrican Funktron Robot's picture

Is that why the /zb is so hilariously overbought?

NotApplicable's picture

I always replace the word "government" with the more fitting label, "mafia."

Instantly, all of the so-called "ineptitude" dissapears and one is confronted by fully coherent actions and motives.

Byte Me's picture

Curious.

This is the exact same amount that Spain needs this month...

Tsar Pointless's picture

<--------- Cynic.

<--------- Conspiracy theorist.

Pick one.

Oh, and I'm thinking of a seven-letter word for what this story is, to me. Can you guess it?

That's right, kids! It's...

BULLISH!

Gringo Viejo's picture

Short attack on metals begins.......just like clockwork.   lol

 

Zero Govt's picture


"The US Budget Surplus Miracle Is Over"

Get Christine Lagarde around to beat up US taxpayers with her Louis Vitton handbag and squeeze some more money out of the "lazy tax cheats"

love the IMF, what's not to like eh

Peter Pan's picture

The US government is doing just fine. It's the people who have lent to it, that I'm worried about. LOL.

LongSoupLine's picture

wow, this must be bullish...look at ES go. 

 

OH wait, I forgot...there's no correlation between reality and equities.

CommunityStandard's picture

Considering 100% of tax revenue goes to entitlements, I don't understand how a surplus was even possible.  Did we not pay anyone else?  Or did we stiff some old ladies for the month?  Or maybe a lot more people owed this April 15th than usual.  (Note: I use "owed" loosely.  I've paid enough into the system that I'm the one that's owed.)

Alejandrito's picture

Recession seems near in US, very near.

http://cut.by/61kL1

Winston Churchill's picture

So where will that put us on the debt ceiling breach date ?

SokPOTUS's picture

Approx. October 15th.  "Surprise!!!"

Kamehameha's picture

That U.S federal government is going supernova baby!

irie1029's picture

This is insane and you know they are itching for an invasion into syria.  Think of all the people we can "save".

ElvisDog's picture

I predict the invasion of Syria will never happen. The world/domestic situation is too unstable right now. Or if Obama does go through with the invasion, it will backfire on him big time.

Sudden Debt's picture

Why do you think China is filling up it's oil supply to hostorical highs?
...
It's like they're preparing for their own little war... Even as they have a primo oil supplier next door called the Land Of Puttin

ilovefreedom's picture

"And longer-term. Note the lonely surplus outlier"

Arms sale?

Sudden Debt's picture

Spain needs 125 billion and it's like the world is ending...
America adds another 125 billion to it's credit card bill and it gets a complimentairy green day on the DOW?

TheGermanGuy's picture

I´m glad that I owe more than I own...