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US Posts Biggest March Budget Deficit In History, Or How The ???? Chart Became The ????+? Chart
Following the all time record high February budget deficit of $232 billion, the US March budget deficit number is in, and in addition to being bigger than expected, coming at $198.2 billion on expectations of "only" $196 billion, the government outlay in the past month also is the largest March deficit on record. This brings the total deficit in fiscal 2012 to $779 billion, which is to be expected for a country gripped in total political chaos and which is unable to either raise revenues or lower spending. What is more disturbing is that over the same period (Oct 1 2011 - March 31, 2012), the US government issued $792 billion in debt, a trend that will continue. What is most disturbing is that the comparable tax revenues net of refunds, "matching" this increase in deficit and spending, are only $693 billion, in other words the US government is funding well more than half of its cash needs with debt rather than with tax revenue. Just like Japan.
The chart below speaks for itself...
as does the longer term chart.
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Although the truth remains beautiful. If only more people were genuinely interested in it...
no one has a clue where the money is going....it is going to the bush crime syndicate and its wall street henchmen....
one reason the bcs blew up the wtc was to hide 2.3 trillion usd missing from the pentagon budget - quite a feat considering that the fy 2000 official budget was 267b and does not include base maintenanc, black operations, and other outlays not tracked under dod budget proper....
so how many years did it take to loot 2.3 trillion usd? it is still ongoing today....more is borrowed than is spent...where is it going????
No big secret, just monetizing the debt, the last act of all failed dead empires. There is no 'money'.
"There is no 'money'."
You are more correct than I'll bet you realize.
Money exists nowhere else in the known universe, it is not a component of life, but a fulcrum for death.
Nature can deal with fraud, and will.
No I realize it fully.
'Money exists nowhere else in the known universe, it is not a component of life, but a fulcrum for death.'
If we're going to start on this let us give it its rightful place instead of disparage even condemn. To be fair though, as a concept it does in fact 'exist'. 'Money' is a social bond.
It exists in exactly one place - man's insanity.
Ut oh, here we go again... Are we talking about debt or money?
Try telling a hooker in Vegas that "There is no money."
Right after I tell her why it hurts to pee.
$430b in two months.Of the $1.2t debt increase
Tyler's right about needing to raise the debt ceiling in September.
why raise the debt celing
when you can lower
the monetary floor...
FRED is ...interesting on two levels:
First, it is non-log; why would the Fed do such a thing!?
Second, it covers both fiat and non-fiat periods of the US economy.
Make two charts, one pre and one post fiat, both log scale.
Now that would be interesting.
And not deceptive.
I am expanding my definition of treason to anyone who looks at these charts and proclaims all is well... because you mother fuckers are the enemy.
Krugman here, I don't see any problem
xoxo, Pauly
It's a chart. You expect the average person to even understand it? For all they know, it's a recipe for apple pie.
Peoples Homestead Act 2014
Find a vacant home, move in, defend from roving bands of crimminals.
It's yours. No mortgage, No Property tax.
The only roving band you'll encounter is the police force, as it's much safer for them to target you rather than the violent criminals. Not to mention, more criminals equal more money for the police. So, other than occassional PR, they have no motivation to actually fix anything.
Which isn't saying that the roving bands won't be out there, but that the other gang will beat them to you. (each type of gang preys on the weakest victims first)
Obamanation:(
one of the ugliest charts for sure
Agreed. And what's stunning is that, as pointed out by Tyler above, the chart is from the St Louis FED.
One day, someone will wake up and say "where has all the money gone?"
By then they will be broke and homeless.
Article I, Section 9
No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.
Now ain't that time.
Like the Treasury has any money!
"I will gladly pay you thirty years from today, for a hamburger I ate yesterday."
more like ...
"You! Give me $100 for that burger I ate 30 years ago!"
Obama needs no revenue! He will build his empire on pixie dust!
No, no, it's Hopium.
Oh wait, that one is crumbling.
What, me worry ?
Please - continue to bring us the latest news on deficit spending and borrowing. In reality however, this really does not matter any longer to the American People, nor markets in general.
Its all good until it stops - where it stops no one knows. Could be 1 year or 10 years, or hope happens and the world experiences a growth spurt of 5+% or more per year.
The management part of 'Office of Management and Budget' should be dropped. In fact, they should drop the budget part also since they really are not operating within any defined budget.
However they could just add one word that would best define them'Busted Office of Management and Budget' (BOMB).
/point
Terrorist!
I have it on good authority that they will start cutting spending and also start to bring in more tax revenue in the very near future. They mean business and this is going to be a bi-partisan effort.
So the same people who got us into this mess will be the same people who get us out? That's a nice fantasy.
In the land of the Unicorn
and home of the Imaginary Fairies
anything is possible.
I've got Skittles! I'm sure they help. la la la
Will it be too little too late? Those whole shebang appears to have taken on a life of its own. If they haven't already lost control, they are close to doing so, I believe.
This is all you need to know in order to be certain that there WILL be a QE3. It's just a question of what "excuse" they will use to rationalize it. Just imagine where bond yields would be if the Fed was not buying 60% of new Treasury issuance.
The problem with that certainty, based upon nothing more than 'They did it a few times before, so therefore will do it again', is that its just not 2009 anymore when gas cost $1.60 and hamburger was $1.20 a pound....now triple all those prices today and try good ol QE again. Have fun with that $6 gas and ground chuck for $5 a pound.
They will just blame the gas spike on those evil brown Muslims over there in the middle east.
If I borrow $10K from myself, and pay the interest to myself, am I any richer?
Self-monitization is soooo 2011.
You are if you use it to buy everyone else's debt. Fed notes may be fed liabilities, but it is our debts that are behind them (their assets). Add to that the they can always meet their liabilities by borrowing more from themselves, and you'll see there's nothing that can stop them.
Well, other than the reemergence of a market. (not holding my breath)
Recovery bitchez!
Let's see EU, Japan, US massive debts. I think it's sustainable, Rally Time
Yeah, so what??? The "market" is up 95 and so, clearly then, and beyond a shadow of a doubt, all is right in LaLa Land. Risk On!
EconoDay sees this as, well...bullish, I suppose is a good word for it.
Spin, spin, sugar!
Highlights
The nation's budget gap came in about as expected in March, at $198.2 billion. Halfway through the government's fiscal year, the budget gap continues to show improvement, at a fiscal year-to-date $779.0 billion vs a gap of $829.4 billion at this time last year. Details show an especially strong increase this fiscal year in corporate tax receipts vs a razor thin increase for the much larger category of individual tax receipts. Outlays show a 2.0 percent decrease in defense spending so far this fiscal year as well as spending declines in categories that include education, the environment, and health.
Interesting that the volitility came in right when the US hit peak oil ;)
"We can't substantially increase our domestic production, so we would need to import twice as much oil as we do now. Supplies will be uncertain. The cost will keep going up. Six years ago, we paid $3.7 billion for imported oil. Last year we spent $37 billion -- nearly ten times as much -- and this year we may spend over $45 billion.
Unless we act, we will spend more than $550 billion for imported oil by 1985 -- more than $2,500 a year for every man, woman, and child in America. Along with that money we will continue losing American jobs and becoming increasingly vulnerable to supply interruptions."
In 2011, The U.S. imported 4.1 billion barrels of petroleum accounting for 60 percent of the U.S. supply. The total cost of those imports was $453.6 billion.
So Carter was off by a few years... lol
edit
This speech was delivered April 18, 1977, interesting were that date falls on the graph.....
But stocks are up 90+ points! Go figure!
I'm not very smart... but even I know that something is very wrong with this picture. Putting politics aside, it looks like Ron Paul and Paul Ryan are the only 2 who have tried to put something forward to balance the budget. Is there any serious Obama plan to balance the budget?
When this thing explodes, we're going to be in some serious trouble. In my mind, the discussion is moving from crazy people talking about bullets and guns... to seeing actual social unrest.
This is not good.
Why is it always "crazy people" when "bullets and guns" are mentioned? What society in history has ever collapsed gracefully and without widespread violence? Rule of law always breaks down. If you do not own and know how to use firearms yet, you had damned well get off your ass and make it happen soon. This will get ugly, and I'm not crazy.
In other news, my local sub shop rasied prices on a footlong sub to $10. (I went there after the line was too long at Subway. Next time I'll stand in line.)
A pound of Boars Head Turkey is like $9-10, stop living the 1% high life having others make your food and come back down to earth and build your own sandwich.
Let us not annualise that number.
keynesian 2.0. with zirp does it really matter what the deficit is? if money costs nothing then there is unlimited utility. fn brilliant! if only .gov would realize this and exempt the first 106 grand from income taxes or get rid of income taxes altogether and zirp .gov to spend all it wants all the time.
Tyler, I assume the Fed is buying most if not all of this debt. Is that right? Would be useful to get a chart showing the Fed's balance sheet and monetary base every month and how that corresponds to the increase in debt.
I wonder how much 30,000 drones 450 million rounds of .40 cal and 175 million rounds of 5.56 will add to the deficit.
http://theintelhub.com/2012/02/09/congress-approves-30000-spy-drones-over-america-as-us-police-state-tightens/
http://www.marketwatch.com/story/atk-secures-40-caliber-ammunition-contract-with-department-of-homeland-security-us-immigration-and-customs-enforcement-dhs-ice-2012-03-12
I din't care I just invested in WSGI
Can you make a logarithmic plot of the second chart? It would show the ripples in more details and probably indicate some sort of exponential trend
The " Aero Bong" Slewie?
I can't stop Huff & Puffing those copywrites( Net scape), being sold off. You are the guy to turn that company into something "workable"! I'm dead hat Republican! I respect Liberals though!
You are the man for the job!
Oh, goody. Obama's gonna need to ask for a debt ceiling hike in about, what, August? Anybody updated the older projections seen here before?
Long on popcorn, anyway.
Hey Kids,
Don't be afraid of the deficit, inflation and all this other chatter. There is nothing to be scared of. We have got it ALL covered.
The size of the deficit will NEVER matter as long as we continue to CONSOLIDATE wealth distribution.
We keep all those new "dollars" we print in the hands of an increasingly smaller group of super, duper smart and wealthy people who are not likely to consume but rather "invest". We don't want you kids stirring up inflation by increasing demand and consumption.
Please don't worry about interest rates increasing. They never will! We don't care if China won't buy our treasuries - in fact, we kind of like it that they DON'T want to anymore. The Fed will "buy" as much as we have to sell. Honest! They said they would and well, we all went to school together and worked together - so we can really trust each other. We're total BFFs! You kids are lucky that we know each other so well.
So pay your rent, pay your taxes, eat your HFCS cereal and watch some more DWTS!
(Apparently, that Missy Gilbert took a nasty spill the other night).
Stop worrying about the DEFICIT - it just does not matter!
Hugs and Kisses,
Your Pals @ The Top
P.S. Sorry that we had to foreclose on your house :-(
But the good news is that we are going to be investing in housing again (I know, right! Can you believe it?) - but don't you worry, we will give you first dibs on renting it back from us.
I just heard a news clip on the radio of Obama talking to some crowd and the crowd just CHEERING like he was immortal. You know when people say "Americans are going to get what they deserve"?....I think they are talking about these types of people cheering on Obama and his reckless administration (Their domestic as well as foreign policies).
Im always a bit leery of OMB numbers, its a creature of the Executive and seems to twist things to suit whoever is in office. Treasury reports dont back up a surplus in FY 2000 and show a deficit, anyone have a rational explanation for why OMB shows that it did?
Come to think of it, the Treasury figures dont match what is shown here either, will the real figures for debt accumulation please stand up? It seems that every office in the government has different figures, I had always considered Treasury's reports to be the final word. If anyone can show why this is incorrect, I am certainly game to listen.
To what degree would it matter if the 2008 spike down was only half as big or twice as big?
As was pointed out in various posts about QE, injecting more money into the system yields diminishing returns.
More and more will have to be injected trough deficit spending just to maintain the status quo. Same goes for Europe.
If only those psychopaths would have allowed the thing to collapse naturally we would be in a REAL recovery right now.