This page has been archived and commenting is disabled.

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.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 07/12/2012 - 14:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment gold-is-not-dead
gold-is-not-dead's picture

I'm sticking to Bavarischen Motor Wagen.

Thu, 07/12/2012 - 16:17 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Stoploss
Stoploss's picture

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

Thu, 07/12/2012 - 16:16 | Link to Comment noob
noob's picture

...the popcorn?

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

Thu, 07/12/2012 - 14:26 | Link to Comment 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 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Einhorn belongs in prison.

Thu, 07/12/2012 - 14:52 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment WhyDoesItHurtWh...
Thu, 07/12/2012 - 14:54 | Link to Comment 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 | Link to Comment earleflorida
earleflorida's picture

+100

Thu, 07/12/2012 - 14:28 | Link to Comment 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 | Link to Comment JustObserving
JustObserving's picture

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

Thu, 07/12/2012 - 14:34 | Link to Comment 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 | Link to Comment timbo_em
timbo_em's picture

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

Thu, 07/12/2012 - 14:33 | Link to Comment inkarri9
inkarri9's picture

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

Thu, 07/12/2012 - 14:37 | Link to Comment timbo_em
timbo_em's picture

And that is why the world needs more Pedro Schwartzs

Fri, 07/13/2012 - 04:38 | Link to Comment mrmic2027
mrmic2027's picture

According to Krugman it's not enough

Thu, 07/12/2012 - 14:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment t_kAyk
t_kAyk's picture

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

 

/sarc

Thu, 07/12/2012 - 14:30 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

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

Thu, 07/12/2012 - 14:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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

Thu, 07/12/2012 - 15:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Hype Alert
Hype Alert's picture

Just a drop in the bucket.

Thu, 07/12/2012 - 14:53 | Link to Comment 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 | Link to Comment BalanceOrBust
BalanceOrBust's picture

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

Thu, 07/12/2012 - 14:58 | Link to Comment Hal n back
Hal n back's picture

how can a cash flow deficit be 60 billion and debt increases by 85 Billion?

Thu, 07/12/2012 - 15:37 | Link to Comment Hal n back
Hal n back's picture

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.

Thu, 07/12/2012 - 15:03 | Link to Comment urbanelf
urbanelf's picture

Obama put us on track to balance the budget by 3014

Thu, 07/12/2012 - 15:05 | Link to Comment mark7
mark7's picture

You disgusting, wasteful American SLOBS! Gimme 20 pushups! NOW! :) You better start exporting more tomorrow or it will be 30! No more excuses!

Thu, 07/12/2012 - 15:12 | Link to Comment newworldorder
newworldorder's picture

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.

Thu, 07/12/2012 - 15:19 | Link to Comment hellas4life
hellas4life's picture

“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.”

Thu, 07/12/2012 - 16:45 | Link to Comment DosZap
DosZap's picture

 “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.

Thu, 07/12/2012 - 15:23 | Link to Comment yogibear
yogibear's picture

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.

Thu, 07/12/2012 - 16:10 | Link to Comment PulpCutter
PulpCutter's picture

"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".

Thu, 07/12/2012 - 15:33 | Link to Comment EmmittFitzhume
EmmittFitzhume's picture

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! 

Thu, 07/12/2012 - 15:36 | Link to Comment PulpCutter
PulpCutter's picture

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...

Thu, 07/12/2012 - 15:42 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

Thu, 07/12/2012 - 15:53 | Link to Comment PulpCutter
PulpCutter's picture

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...

 

Thu, 07/12/2012 - 16:08 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

Thu, 07/12/2012 - 16:09 | Link to Comment PulpCutter
PulpCutter's picture

It's "Debt/GDP".

Here, try one of these - they may help.

http://www.k12reader.com/1st-grade-reading-comprehension-worksheets/

 

Thu, 07/12/2012 - 16:13 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

Thu, 07/12/2012 - 15:55 | Link to Comment gatorengineer
gatorengineer's picture

When do we hit the debt ceiling most importantly.......?  Still before the election I hope.

Thu, 07/12/2012 - 16:05 | Link to Comment Bastiat
Bastiat's picture

I've read: September.

Thu, 07/12/2012 - 16:10 | Link to Comment Chaos_Theory
Chaos_Theory's picture

If it wasn't for the damned airport kiosks, we'd be in the black.  Bastards...

Thu, 07/12/2012 - 16:14 | Link to Comment Colonial Intent
Colonial Intent's picture

.

 

 

 

A New York City donor a few cars back, who also would not give her name, said Romney needed to do a better job connecting. “I don’t think the common person is getting it,” she said from the passenger seat of a Range Rover stamped with East Hampton beach permits. “Nobody understands why Obama is hurting them.

“We’ve got the message,” she added. “But my college kid, the baby sitters, the nails ladies — everybody who’s got the right to vote — they don’t understand what’s going on. I just think if you’re lower income — one, you’re not as educated, two, they don’t understand how it works, they don’t understand how the systems work, they don’t understand the impact.

Thu, 07/12/2012 - 16:29 | Link to Comment orangegeek
orangegeek's picture

More debt, more deflation.

Do NOT follow this link or you will be banned from the site!