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US June Deficit: $60 Billion, $17 Billion Worse Than Prior Year

Tyler Durden's picture




 

The good news: the deficit in June was $59.7 billion, just on top of expectations of $60.0 billion. The bad news: the June deficit was $59.7 billion, following $125 billion in May (and yes, right after that shocking and one-time, tax return driven $59 billion surplus in April), and $16.7 billion higher compared to last June. Total debt in June increased by $85.7 billion so more or less in line. The cumulative deficit in Fiscal 2012 is now $904 billion through June, compared to $970 billion last year over the same period. Will this ever change? Not as long as profligate spending-encouraging record low yield is there. Tune in next month when we find that the July deficit was about $140 billion in line with historical data.

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Thu, 07/12/2012 - 14:25 | 2610586 mick68
mick68's picture

But, but, CNN told me Obama is the thriftiest president ever. I don't understand!

Thu, 07/12/2012 - 14:31 | 2610613 101 years and c...
101 years and counting's picture

he only loses 1 sleeve of golf balls per round, instead of the typical 3-4 sleeves for a sitting president.

Thu, 07/12/2012 - 14:46 | 2610657 Thomas
Thomas's picture

These kind of growth rates are not the beginning of the end; they are the end of the end. This is the final death rattle.

Thu, 07/12/2012 - 15:06 | 2610687 Kitler
Kitler's picture

You just don't understand the new economics.

Someones debt is someone elses asset, and we have all been told that debt doesn't matter anymore. I see therefore lots of new asset/wealth creation but rather than coming in the standard black variety it all comes in red now like classic Ferraris.

Everything is fine. Trust me.

Thu, 07/12/2012 - 15:38 | 2610834 gold-is-not-dead
gold-is-not-dead's picture

I'm sticking to Bavarischen Motor Wagen.

Thu, 07/12/2012 - 16:17 | 2610973 ATM
ATM's picture

How's your anus feel? I can't sit in one of those. Feels like riding 3/4in plywood.

I'll stick with the MB - diesel of course.

Thu, 07/12/2012 - 14:33 | 2610619 Marginal Call
Marginal Call's picture

Only 17 billion more than last June.  We've fully implemented Greek style austerity. 

Thu, 07/12/2012 - 16:33 | 2611025 TrainWreck1
TrainWreck1's picture

If by thrifty, they mean "forgets to pay" or "does not tip" then they are correct*

 

*notwithstanding the current campaign tour, where they make a point of emphaszing EVERY tip he leaves.

 

Thu, 07/12/2012 - 14:26 | 2610589 Cognitive Dissonance
Cognitive Dissonance's picture

Ummmmmm

So what happened around September of 2008? Did I miss something?

/sarc

Thu, 07/12/2012 - 15:32 | 2610802 Stoploss
Stoploss's picture

WTF, everything is inline with "historical data" lately, no matter how fucked up.

Thu, 07/12/2012 - 16:16 | 2610970 noob
noob's picture

...the popcorn?

The Muppets - Popcorn
http://www.youtube.com/watch?v=AvDvTnTGjgQ

Thu, 07/12/2012 - 14:26 | 2610592 geewhiz190
geewhiz190's picture

and Einhorn says the gov't should raise interest rates to 2 or 3% so savers can get a return. did he think that through?

Thu, 07/12/2012 - 14:29 | 2610601 midgetrannyporn
midgetrannyporn's picture

Einhorn belongs in prison.

Thu, 07/12/2012 - 14:52 | 2610663 Thomas
Thomas's picture

Why does Einhorn belong in prison? What crime did he commit? To the extent that he speculates, he often finds the criminals and shines the light of day on them. Was he wrong about Lehman? Was he wrong about Allied Capital? Was he wrong about Saint Joe's? The David Einhorns of the world speculate as a free market consequence to irrational monetary policy and criminal behavior in the financial system. Don't blame the shorts. Blame the real criminals. (BTW-He is net long.)

BTW- Here is the Saint Joe presentation...

http://www.marketfolly.com/2010/10/why-david-einhorn-is-short-st-joe-joe...

Thu, 07/12/2012 - 15:19 | 2610760 buzzsaw99
buzzsaw99's picture

insider trading. he belongs in the same cell with corzine, paulson, and all the rest.

Thu, 07/12/2012 - 14:33 | 2610617 CrashisOptimistic
CrashisOptimistic's picture

Bingo.

There can't be a ramp up in rates at this level of debt.  It can't happen, and that is even beyond "it can't be allowed".  It can't happen. 

There can't be growth, people.  Oil has always been the engine of it all and it's scarce now and chokes off growth.  Borrowing tries to leverage (amplify) that tiny possible growth and this is the result.  Devastation.

It's very hard to beat bonds, whose yields are enroute to -0.75%.

Thu, 07/12/2012 - 14:54 | 2610671 WhyDoesItHurtWh...
Thu, 07/12/2012 - 14:54 | 2610672 Thomas
Thomas's picture

Einhorn is simply noting that ZIRP is killing the system. What part of that is unsupported by countless articles at ZH? For Christ's sakes: He's on our fucking team!

Thu, 07/12/2012 - 15:55 | 2610887 earleflorida
earleflorida's picture

+100

Thu, 07/12/2012 - 14:28 | 2610597 Soda Popinski
Soda Popinski's picture

And Gold still goes down somehow.  No manipulation here.  gag.  Corruptus in Extremus. 

Thu, 07/12/2012 - 14:32 | 2610614 JustObserving
JustObserving's picture

"The world will have no safe haven but the US dollar" - Bernanke

Thu, 07/12/2012 - 14:34 | 2610626 CrashisOptimistic
CrashisOptimistic's picture

Gold and money both have value that exists only inside your head.

Think cropland.  Or an oil well.  Those have value outside your head.

Thu, 07/12/2012 - 14:29 | 2610603 timbo_em
timbo_em's picture

So 2 percent growth of GDP minus 10 percent deficit spending equals...

Thu, 07/12/2012 - 14:33 | 2610616 inkarri9
inkarri9's picture

According to Krugman, it equals a "happy ending".

Thu, 07/12/2012 - 14:37 | 2610629 timbo_em
timbo_em's picture

And that is why the world needs more Pedro Schwartzs

Fri, 07/13/2012 - 04:38 | 2612083 mrmic2027
mrmic2027's picture

According to Krugman it's not enough

Thu, 07/12/2012 - 14:58 | 2610682 JustObserving
JustObserving's picture

2 percent growth is on a manipulated inflation number.  If you use the right inflation number, growth is near zero and even negative.

Thu, 07/12/2012 - 14:30 | 2610605 101 years and c...
101 years and counting's picture

PhD economists everywhere (Krugman) are pounding the table: WE NEED MORE DEBT, WE NEED MORE DEBT!!!

Thu, 07/12/2012 - 14:30 | 2610606 t_kAyk
t_kAyk's picture

There's all that 'Change' I was hoping for!! 

 

/sarc

Thu, 07/12/2012 - 14:30 | 2610607 John_Coltrane
John_Coltrane's picture

Obama, Spendthrift-in-Chief to go with his acknowledged title of Teleprompter-in-Chief.  Can't wait until the next debt ceiling debate-hope it happens just a few weeks before the election as I'm guessing the house won't go along with an increase this time after getting scammed the last time.  Income transfer just can't be the national economic program.

Thu, 07/12/2012 - 14:40 | 2610641 Nobody For President
Nobody For President's picture

The house getting scammed my ass - the house was PART OF the scam. They agreed - nay demanded - what is now being called the 'fiscal cliff'. Now they can play with it, before backing off after the election - doesn't matter who gets elected.

Thu, 07/12/2012 - 14:31 | 2610608 cougar_w
cougar_w's picture

We are America! Dammit we can go broke faster than those piker Frenchies, or the damned English for that matter. Heck we can go broke faster than all them yer-a-pee'n pussy countries combined!

Makes me proud. It does.

Thu, 07/12/2012 - 14:31 | 2610612 inkarri9
inkarri9's picture

Isn't it at over $1T now?  $1.09T to be exact is we calculate how much the debt on the books has increased since the beginning of the current FY...

Thu, 07/12/2012 - 15:00 | 2610620 Griffin
Griffin's picture

Some good news for a change.  Wikileaks has won a case against Valitor in district court in Iceland, so Visa and Master Card will be forced to allow payments to Wikileaks, it seems there are little grounds for a appeal to the Supreme court.

Similar cases are being prepared in other countries.

http://www.demotix.com/news/1329662/datacell-and-wikileaks-win-credit-ca...

Thu, 07/12/2012 - 14:34 | 2610622 MillionDollarBoner_
MillionDollarBoner_'s picture

s'only fiat...plenty more where that came from...ho hum

Thu, 07/12/2012 - 14:36 | 2610628 eclectic syncretist
eclectic syncretist's picture

What's 1% of a trillion.......it's 10 billion.  So if the total debt is 15T and we pay 2% interest then that's 300 billion a year to pay interest on the debt.  At 5% interest it would be 750 billion every year

Clearly the debt will never be paid off, nor was it ever meant to be.  The whole system was designed from the start as a slow slide into ever increasingly worthless paper money.

That's why land, gold, silver, oil, and other non-perishable commodities or precious collectibles are the alternatives to watching your assets lose value over the long haul.

Thu, 07/12/2012 - 14:38 | 2610633 yrad
yrad's picture

And I'm proud to be an American, for at least I know I'm free...

Do they have 1 hour exercise time in debt prison?

Thu, 07/12/2012 - 14:59 | 2610636 Shameful
Shameful's picture

Cool, just need to get those yields down like the Swiss.  Imagine the hilarity from Capital Hill if/when yields go negative.  Find myself fully in the Outer Limits "We have to spend more!  It's the only way to decrease the debt!"

Thu, 07/12/2012 - 14:40 | 2610637 LawsofPhysics
LawsofPhysics's picture

It's okay, debt will soon be paying for itself. This should end well, especially for an insolvent nation.

Thu, 07/12/2012 - 14:49 | 2610662 Al Huxley
Al Huxley's picture

Once the negative yields kick in and the debt starts paying itself off, the nation will no longer be insolvent.  Somebody should have thought of the whole negative yields thing years ago.

Thu, 07/12/2012 - 15:36 | 2610820 LawsofPhysics
LawsofPhysics's picture

Truely surprising how many people are willing to pay the government to lose money. 

Thu, 07/12/2012 - 15:46 | 2610855 PulpCutter
PulpCutter's picture

You mean like America did after WWII?  BTW, debt/GDP was considerably higher then.

http://zfacts.com/p/318.html

Thu, 07/12/2012 - 16:11 | 2610948 LawsofPhysics
LawsofPhysics's picture

What were the tax rates after WWII again?  Pretty clever how you count private debt with public debt.  No suprise that private companies (many that received bailouts from the taxpayer) are paying off private debt.  The public debt is still growing, period.  Thanks for pointing out how the socialization of private losses works.

Thu, 07/12/2012 - 14:43 | 2610648 Animal Cracker
Animal Cracker's picture

Yeah?  So?

Dick Cheney said Reagan proved that deficits don't matter.  Then he shot his friend in the face.

 

Thu, 07/12/2012 - 14:44 | 2610653 erheault
erheault's picture

Not to worry we have a huge Battery of printing presses which can be used to print money to buy our debt VOLA all debt paid off as it is accumulated.  In fact the overrun of the phony paper can be sent out overseas to impress all of the 3rd world dictators,  So run out and use your credit cards to their max as it is all free and will save the nation!  Long live Obamma economics.

Thu, 07/12/2012 - 14:47 | 2610658 Clint Liquor
Clint Liquor's picture

The debt ceiling is $16.4T. The debt is $15.9T. Looks like we make it just past the elections.

Thu, 07/12/2012 - 14:48 | 2610659 falak pema
falak pema's picture

Its all the fault of Lie-bor not being applied more in the appropriate places! 

The USA loses money every month 'cos we don't know how to apply a tax on those Arab shills when we buy their lousy oil. Us and Euro trade deficits are mainly generated by imports of Arab and foreign oil. If only we could lie-bor them and make them pay back with a spread interest expense to compensate for our trade deficits, all to make Arab or Ruski oligarchy sheikhs rattle n roll in their palaces! 

Apply them a true lie-bor rate to compensate for our oil purchases and we're home n dry !! 

To be indexed on future oil price hikes and we'll have saved Gen X n Y !!

Thu, 07/12/2012 - 14:51 | 2610665 Hype Alert
Hype Alert's picture

Just a drop in the bucket.

Thu, 07/12/2012 - 14:53 | 2610669 Never One Roach
Never One Roach's picture

Whew! I'm glad at least "housing has bottomed" and "the private sector is doing well."

Thu, 07/12/2012 - 14:55 | 2610674 BalanceOrBust
BalanceOrBust's picture

Does the deficit even matter anymore?  Why do we even bother keeping track?

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