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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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Tue, 06/12/2012 - 14:12 | 2518763 CPL
CPL's picture

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

Tue, 06/12/2012 - 14:13 | 2518769 transaccountin
transaccountin's picture

giving welfare to wallstreet aint cheap

Tue, 06/12/2012 - 14:16 | 2518786 surf0766
surf0766's picture

giving welfare to anyone is wrong

Tue, 06/12/2012 - 14:39 | 2518898 Gringo Viejo
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

Tue, 06/12/2012 - 15:18 | 2519065 flacon
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. 

Tue, 06/12/2012 - 15:29 | 2519104 surf0766
surf0766's picture

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

Tue, 06/12/2012 - 14:56 | 2518982 walküre
walküre's picture

you're on someone's welfare right now.

Tue, 06/12/2012 - 15:01 | 2519012 surf0766
surf0766's picture

And what welfare is that

Tue, 06/12/2012 - 14:14 | 2518778 Unprepared
Unprepared's picture

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

Tue, 06/12/2012 - 14:31 | 2518846 Zero Govt
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

Tue, 06/12/2012 - 14:24 | 2518825 Sudden Debt
Sudden Debt's picture

Thank god the US isn't spain...

Tue, 06/12/2012 - 14:28 | 2518842 lemonobrien
lemonobrien's picture

we're like Tanzania.

Tue, 06/12/2012 - 14:31 | 2518857 Zero Govt
Zero Govt's picture

Tanzania is growing at 9% 

..no you're not

Tue, 06/12/2012 - 14:59 | 2518999 ElvisDog
ElvisDog's picture

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

Tue, 06/12/2012 - 16:18 | 2519363 SokPOTUS
SokPOTUS's picture

Tanzania is doing *fine.*

Tue, 06/12/2012 - 14:12 | 2518764 mrktwtch2
mrktwtch2's picture

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

Tue, 06/12/2012 - 14:18 | 2518801 Coyote57
Coyote57's picture

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

Tue, 06/12/2012 - 14:21 | 2518812 flying dutchmen
flying dutchmen's picture

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

Tue, 06/12/2012 - 14:30 | 2518849 nickt1y
nickt1y's picture

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

Tue, 06/12/2012 - 15:38 | 2519133 NotApplicable
NotApplicable's picture

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

Silly statists...

Tue, 06/12/2012 - 14:49 | 2518940 SimonH
SimonH's picture

Gary Johnson

Tue, 06/12/2012 - 15:42 | 2519152 NotApplicable
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).

Tue, 06/12/2012 - 14:12 | 2518766 GeneMarchbanks
GeneMarchbanks's picture

Black Swan!

Tue, 06/12/2012 - 14:20 | 2518808 Manthong
Manthong's picture

Cue nosedive  3.. 2.. 1..

Tue, 06/12/2012 - 14:26 | 2518829 valley chick
valley chick's picture

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

Tue, 06/12/2012 - 15:37 | 2519129 vh070
vh070's picture

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

Thu, 06/21/2012 - 14:34 | 2518823 ZerOhead
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."

 

Tue, 06/12/2012 - 14:16 | 2518788 lasvegaspersona
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!!

Tue, 06/12/2012 - 14:16 | 2518791 asteroids
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.

Tue, 06/12/2012 - 14:30 | 2518852 Panafrican Funk...
Panafrican Funktron Robot's picture

Is that why the /zb is so hilariously overbought?

Tue, 06/12/2012 - 15:45 | 2519162 NotApplicable
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.

Tue, 06/12/2012 - 14:16 | 2518793 Byte Me
Byte Me's picture

Curious.

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

Tue, 06/12/2012 - 14:30 | 2518847 Tsar Pointless
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!

Tue, 06/12/2012 - 15:21 | 2519082 Buckaroo Banzai
Buckaroo Banzai's picture

Why can't I pick both???

Tue, 06/12/2012 - 14:20 | 2518806 Gringo Viejo
Gringo Viejo's picture

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

 

Tue, 06/12/2012 - 14:21 | 2518815 Zero Govt
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

Tue, 06/12/2012 - 14:23 | 2518820 Peter Pan
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.

Tue, 06/12/2012 - 14:24 | 2518824 LongSoupLine
LongSoupLine's picture

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

 

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

Tue, 06/12/2012 - 14:28 | 2518838 CommunityStandard
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.)

Tue, 06/12/2012 - 14:31 | 2518856 surf0766
surf0766's picture

EBT's were loaded late

Tue, 06/12/2012 - 14:31 | 2518858 Alejandrito
Alejandrito's picture

Recession seems near in US, very near.

http://cut.by/61kL1

Tue, 06/12/2012 - 14:33 | 2518863 Winston Churchill
Winston Churchill's picture

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

Tue, 06/12/2012 - 16:21 | 2519377 SokPOTUS
SokPOTUS's picture

Approx. October 15th.  "Surprise!!!"

Tue, 06/12/2012 - 14:42 | 2518905 Kamehameha
Kamehameha's picture

That U.S federal government is going supernova baby!

Tue, 06/12/2012 - 14:49 | 2518942 irie1029
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".

Tue, 06/12/2012 - 15:01 | 2519013 ElvisDog
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.

Tue, 06/12/2012 - 15:18 | 2519066 Sudden Debt
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

Tue, 06/12/2012 - 14:51 | 2518950 ilovefreedom
ilovefreedom's picture

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

Arms sale?

Tue, 06/12/2012 - 15:15 | 2519050 Sudden Debt
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?

Tue, 06/12/2012 - 15:15 | 2519051 TheGermanGuy
TheGermanGuy's picture

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

Tue, 06/12/2012 - 15:17 | 2519062 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

The private sector is doing fine.

The private sector is doing fine.

The private sector is doing fine.

The private sector is doing fine.

Tue, 06/12/2012 - 15:32 | 2519110 Walt D.
Walt D.'s picture

If you want the exact numbers, warts-n-all go here:

http://www.treasurydirect.gov/NP/NPGateway

Tue, 06/12/2012 - 15:34 | 2519117 Joe Davola
Joe Davola's picture

Dontcha actually have to have a budget?

Tue, 06/12/2012 - 15:34 | 2519121 dbTX
dbTX's picture

Miracles appear in the strangest of places.

Tue, 06/12/2012 - 16:11 | 2519317 n2dark
n2dark's picture

Why is anybody still paying any attention to this bs, when it is common knowledge that the numbers are whatever somebody wants them to be? How else can you explain the 'adjustments', 'normalizations' and all the arbitrary accounting and statistical models that go into this nonsense?! This is nothing more than an uncertified ponzi scheme of unseen before proportions and by keeping track, analyzing and discussing it you are not doing anything else than to give it some legitimacy by connecting it to economic processes when in fact this is completely out and unrelated to any economic circuit. It cannot even be called lending anymore, when all the previous debt and its service is paid by issuing new debt. To make things even more insane, the new debt is issued at an even lower cost to the debtor when it is obvious that its incapacity to ever repay it through own means is slowly but surely becoming a certainty. Let the idiots who are still piling into this to worry about not seeing their money back once enough of them will realize the complete lack of any fundamental correlation between what is thought to be possible and the probability of it ever happening.

Tue, 06/12/2012 - 18:27 | 2519795 ndotken
ndotken's picture

To solve its deficit problem, Washington is trying to figure out how to enact an annual April 15th during every month of the year.

Tue, 06/12/2012 - 19:03 | 2519873 Lednbrass
Lednbrass's picture

OK, I wouldnt dispute with the Tylers lightly but there is an error here. There was no surplus in April.

http://www.treasurydirect.gov/govt/reports/pd/mspd/mspd.htm

According to the Treasury the debt at the end of March was $15,582,079,000,000.

At the end of April the debt was $15,692,367,000.

Im no PhD economist or trading wizard, but as I understand mathematics this clearly shows additional debt of about $110 billion for the month of April.

Wed, 06/13/2012 - 04:49 | 2520670 Ronaldo
Ronaldo's picture

Dont have numbers speak for you, that wouldbe crazy.

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