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US June Deficit: $60 Billion, $17 Billion Worse Than Prior Year
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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But, but, CNN told me Obama is the thriftiest president ever. I don't understand!
he only loses 1 sleeve of golf balls per round, instead of the typical 3-4 sleeves for a sitting president.
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.
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.
I'm sticking to Bavarischen Motor Wagen.
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.
Only 17 billion more than last June. We've fully implemented Greek style austerity.
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.
Ummmmmm
So what happened around September of 2008? Did I miss something?
/sarc
WTF, everything is inline with "historical data" lately, no matter how fucked up.
...the popcorn?
The Muppets - Popcorn
http://www.youtube.com/watch?v=AvDvTnTGjgQ
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?
Einhorn belongs in prison.
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...
insider trading. he belongs in the same cell with corzine, paulson, and all the rest.
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%.
It can't happen here.
http://www.youtube.com/watch?v=vKITpVovTAE
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!
+100
And Gold still goes down somehow. No manipulation here. gag. Corruptus in Extremus.
"The world will have no safe haven but the US dollar" - Bernanke
Gold and money both have value that exists only inside your head.
Think cropland. Or an oil well. Those have value outside your head.
So 2 percent growth of GDP minus 10 percent deficit spending equals...
According to Krugman, it equals a "happy ending".
And that is why the world needs more Pedro Schwartzs
According to Krugman it's not enough
2 percent growth is on a manipulated inflation number. If you use the right inflation number, growth is near zero and even negative.
PhD economists everywhere (Krugman) are pounding the table: WE NEED MORE DEBT, WE NEED MORE DEBT!!!
There's all that 'Change' I was hoping for!!
/sarc
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.
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.
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.
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...
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...
s'only fiat...plenty more where that came from...ho hum
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.
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?
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!"
It's okay, debt will soon be paying for itself. This should end well, especially for an insolvent nation.
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.
Truely surprising how many people are willing to pay the government to lose money.
You mean like America did after WWII? BTW, debt/GDP was considerably higher then.
http://zfacts.com/p/318.html
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.
Yeah? So?
Dick Cheney said Reagan proved that deficits don't matter. Then he shot his friend in the face.
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.
The debt ceiling is $16.4T. The debt is $15.9T. Looks like we make it just past the elections.
Its all the fault of Lie-bor not being applied more in the appropriate places!
The USA loses money every month 'cos we don't know how to apply a tax on those Arab shills when we buy their lousy oil. Us and Euro trade deficits are mainly generated by imports of Arab and foreign oil. If only we could lie-bor them and make them pay back with a spread interest expense to compensate for our trade deficits, all to make Arab or Ruski oligarchy sheikhs rattle n roll in their palaces!
Apply them a true lie-bor rate to compensate for our oil purchases and we're home n dry !!
To be indexed on future oil price hikes and we'll have saved Gen X n Y !!
Just a drop in the bucket.
Whew! I'm glad at least "housing has bottomed" and "the private sector is doing well."
Does the deficit even matter anymore? Why do we even bother keeping track?
how can a cash flow deficit be 60 billion and debt increases by 85 Billion?
the same way that Clinton claimed to have a surplus in deficit yet debt increased every year during his administration.
the more things change the more they stay the same.
Obama put us on track to balance the budget by 3014
You disgusting, wasteful American SLOBS! Gimme 20 pushups! NOW! :) You better start exporting more tomorrow or it will be 30! No more excuses!
Knowingly or otherwise, the country has worked itself up to our current spending. To stop or decrease this spending will require a change in lifestyle especialy for the approx., 20% of the population who have a combination of no work/low income/high government dependency. Then add up our world wide defense obligations/expectations and our current ability to generate tax revenue without F$D printing. All this does not add up to having the ability to get our finances under control.
The only available couse is - FULL SPEED AHEAD at our present course. There does not appear to be any other option that can be taken willingly by the American population. Most do not understand what I have just described and if they did, would not welcome any other solutions if it involved austerity.
“The budget deficit is bad, but it is not as bad as the June figures suggest,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said by e-mail before today’s report. “July social security benefits went out early in June due to the July 4 holiday, which boosted outlays, and next month’s deficit will be underreported as a result.”
“July social security benefits went out early in June due to the July 4 holiday,
He lies....................SS checks go out at different dates during each month.Depending on where your at on the pole.
Benny and the Federal Reserve US dollar trashing team can just print more money.
As long as the fools in the Middle East, Russia, China and rest keep taking it as the reserve currency.
Time to dump the US dollar and leave Benny Bernanke and the injets to their own demise.
"Time to dump the dollar"...he says, as the USD hits .84 again.
Where the hell is 2IfByC? She nailed it - "the dollar may be toilet paper, but the whole world uses it to wipe their asses".
Nice! They spend all tax return receipts in 1 month. I might vote for Obama just so he can ride this nuke all the way to the ground!
Total (public and private) US debt/GDP has been falling since 2010.
If your theory doesn't fit your data, it's time to re-examine your theory. Austrian economics doesn't work; Keynes does.
http://articles.marketwatch.com/2012-06-08/commentary/32103077_1_debt-pr...
And what does economic growth look like again? LMFAO!! Wake me when the U.S. is a net creditor again - FAIL.
Better still, if things are so rosy, why not start another unfunded war or two. Better still, the article says that the recession has "ended". What is unemployment again? What are wages again? too funny.
Another unemployed graduate student in economics to be sure.
The ratio of total debt/GDP is falling. Time to wake up (and pull your head out of your ass).
US private debt is being paid off at the fastest rate since the 1950s.
http://articles.marketwatch.com/2012-06-08/commentary/32103077_1_debt-pr...
So there should be no no need to raise the debt ceiling then? FAIL. In addition, you continue to dodge the issues of growth, employment, and wages. Do they or don't they matter? Answer the question or go fuck yourself loser. No suprise that the rich are paying off private debt, they continue to steal money from the taxpayer via BAILOUTS.
Thanks for pointing out how private losses are SOCIALIZED.
It's "Debt/GDP".
Here, try one of these - they may help.
http://www.k12reader.com/1st-grade-reading-comprehension-worksheets/
Still don't want to talk about public debt, wages, and growth do you. Get back to work, you won't get that Ph.D. by wasting time.
When do we hit the debt ceiling most importantly.......? Still before the election I hope.
I've read: September.
If it wasn't for the damned airport kiosks, we'd be in the black. Bastards...
.
More debt, more deflation.