As US Rakes Largest Monthly Deficit In History, 2012 Tax Revenues Net Of Refunds Trail 2011

Tyler Durden's picture

A few days ago we noted that based on preliminary data, the February budget deficit would hit $229 billion (yes, nearly one quarter of a trillion in one month, about where real Greek GDP is these days) - the largest single monthly deficit in history. Unfortunately, this number was low: the final February deficit was just released and the actual print is $231.7 billion. It also means that in the first 5 months of the fiscal year, the US has raked up $580 billion in deficits, oddly matched by $727 billion in new debt issuance, 25% more new debt issued than needed to fund deficits... And that in itself would not be horrible - February is traditionally the worst month for deficits as the Treasury sees a surge in tax refund issuance - if it wasn't for something even more troubling. As the second chart below shows, through last Friday, and net of tax refunds, total US tax revenues were actually lower in the fiscal 2012 year to date period than compared to 2011, by just under $2 billion, at $625.5 billion. Which is the weakest link for any argument that the US is actually growing: what is growing is America's debt (now almost exponentially), while its revenues are at best unchanged. And the scariest: annualizing net tax revenues brings the number to $1.5 trillion. Which is just 50% more where total US debt interest will be in 2014 when debt is $20 trillion, assuming interest rates are somehow allowed to go back up... to the astronomical level of 5%.

Monthly deficits:

and net US tax revenues:

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YesWeKahn's picture

You have a printer.

redpill's picture

Just in time for CERN to finish work on the antimatter-powered printing press they've been secretly working on.

greased up deaf guy's picture

"... total US tax revenues were actually lower in the fiscal 2012 year to date period than compared to 2011..."

it's a good thing the fed and the gov't maintain a strong dollar policy.  oh, wait...

spiral_eyes's picture

Ron Paul is clearly an extremist for not wanting to continue with the very non-extreme and very serious policies of extrajudicial killing, unilateral "pre-emptive" war, bases around the world, the biggest debt in history, the drug war, etc.

LuKOsro's picture

Where art thou debt ceiling ? Will you show your wretched face before or after the elections ?

CrashisOptimistic's picture

After.  Timmy will raid retirement funds to keep Obama on the campaign trail and out of the debt ceiling negotiations conference room.

Of course, Boehner and his toadies don't want to be in that conference room either so they can go home and lie to voters like any other politician.

Maybe if they are truly hitting the ceiling too soon, they'll legislate a suspension of the daily calendar until after the election.  See, that way the money doesn't run out.  It will be September 30 this year all the way to Dec 31.

Buckaroo Banzai's picture

I remember when a $231 billion deficit was bad for a YEAR. This is seriously fucked up.

CrashisOptimistic's picture

I do remember.

And it was.

And it is.

ilion's picture

I can't wait when Obummer starts blaming Iran for all of this.

WTFx10's picture

He's an employee, did you expect a thinking employee?

withnmeans's picture

Here is a little tid bit that I have been preaching for 20 plus years, I'm glad to see somebody write a book on it. This is about the American way of life, not my life, but the lives of most of them. We cannot live without the Credit Card. As we MSM use it, so does our government, nobody seems to learn.

Its a great read !!!;_ylt=AuAB0K19...

oldman's picture

Dear Crash,

Don't you think that you are being far too cynical?

Have you lost complete faith in the 'American Dream'?

Perhaps, we here at ZH do not comprehend 'reality'               om


resurger's picture

 you can serf in Diego Garcia..

a growing concern's picture

Yeah, you would laugh at the fucktards who say Ron Paul's ideas are scary, if the reality of the shit we're in wasn't so damn sad.

FlyoverCountrySchmuck's picture


How's that HOPEY!-CHANGEY! thingy workin out for ya?

bloostar's picture

That made me chuckle, even as a non-physicist, whom I dare say, if reading, are wetting their pants. 1 up

CrashisOptimistic's picture

America will borrow about 35% of spending this year.  That's how the spending will be funded.

Japan will borrow 49% of spending this year.  They fund spending that way.  50% borrowing.  

The world is insane.

Popo's picture

The world is not insane.

It is collapsing.

Next comes war.   It always does.

CrashisOptimistic's picture

Chart number 2 is really important.

We haven't had a tax cut vs last year.  The payroll tax cut is unchanged.  Neutral.

We've had a REDUCTION in unemployment.  Where is the tax revenue from those newly employed people now at work getting paid and paying taxes?

We've had GDP growth > 0 from 2011 to 2012.  Where is that growth in tax revs?

We've had population increase.  Where is the growth in tax revs?

It's all bullshit.  All of it.  Lies from here to forever.

redpill's picture


Central planners are like an addict or a hardened ex-con.  The addict keeps using despite the health impact and the hardened ex-con tries to get back in the clink after being unable to deal with the real world.  Just the same central planners keep borrowing and spending.  Why?

Because they don't know any other way to live.  

The difference is of course when the addict relapses or the institutionalized criminal reoffends, they (mostly) only impact themselves.  The central planners will destroy the economies of the western world because they literally do not know to do anything but what they are doing.  They are addicted to the conveniences of inflating the money supply, they are institutionalized by Keynesian economics, and nothing will stop them until reality finally brings it crashing down.


real's picture
Central planners, are different then planners based on realistic projections of fuel capacity.
CompassionateFascist's picture

I wouldn't blame it all on the ChairSatan; add in democanrepublicrat Congress + entitlement groups, +corporate special interests, +govt employees in general.  Might even be a little blame left over for that guy/gal U see in the mirror. NOOOOOOOOOOOOOOOOOO! Yes.

Shizzmoney's picture

Where is the tax revenue from those newly employed people now at work getting paid and paying taxes?

And for those who are working (me), we also are making less than we ever have.  That means less money the gov't can collect from e.

Yet again, allowing corporations to keep my wages down through monetary easing is a great way to "give me a tax cut". 

So not only are our taxes going UP, but my pay is not keeping up wit hinflation, never mind the interest on the debt I owe.

Didn't these motherfuckers take Ivy League mathematics courses?

Marge N. Callz's picture

Yes but was is the "seasonally adjusted" monthly deficit??? 

Conrad Murray's picture

Unusually warm winter means more economic activity, thus more debt/deficit.

resurger's picture


if it's cloudy = you Sell Stocks

if it's Sunny = you Buy Stocks



Gunga's picture

The chart is saying "Inflationary default on US dollar denominated debt is coming."

Buzz Fuzzel's picture

Spending other peoples money is Debt.


slewie the pi-rat's picture

don't tell the the IMF!

we'll get troika'd!

DavidC's picture

Errm, this is not good, right?


Spartan's picture

Its ok, looking at CNBC, FT, WSJ, etc nobody seems to care anymore....iPad 3 is out this week right?

LongSoupLine's picture

Here's my summary of CNBS today:


"What's important here, is I'm holding a bar of gold..tee-hee." - Bob Pisani

"Buy all banks like a raging crack whore on payday." - Dick Bove

tickhound's picture

That Pisani piece was freaking AWKWARD.

It shows that gold in NOT for everyone.  There's something about Bob holding a 400 0z "London Jerky" gold bar that sends an oh HELL NO! shock-vibe through the body.

I'll worry when they send Maria with a helmut down a mine shaft.  Pisani?? aw na, na, na, no no noooooooooooooooo.... Might as well be a hit piece on gold.

Update:  Pisani just let Maria hold the bar. 


surf0766's picture

Time for another load of freeze dried... Won't be long now. They can't and don't want it stopped. They want it to collapse to take complete control of everyone.

dwdollar's picture

Have no fear!!! Just as soon as those lazy fuckers start applying for McJobs all will be well!!!


e92335i08's picture

They need a collapse to lower oil prices and wipe out some debt then prime the system with some more ben bersneaky money.

Moneyswirth's picture

Clearly we need to raise taxes on those who produce, which is to say, the smallest piece of the revenue pie. 

In other words, those who create wealth need to step it up---the leeches demand their checks!

real's picture

there is no fixing this system

Argos's picture

Just bought more ammo this morning.  Good timing I guess.

CrashisOptimistic's picture

Who were you planning to shoot?

LFMayor's picture

it's the "not planning to shoot" list you want to strive for.  The other list you mentioned isn't as important then.

Dick Darlington's picture

Juuuuust what the Keynesian squared voodoo doctors ordered. Satisfaction guaranteed! Lol!

navy62802's picture

Speaking of tax refunds, has anyone else's refund check from the IRS taken longer than usual to arrive?