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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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Mon, 03/12/2012 - 15:04 | 2248045 YesWeKahn
YesWeKahn's picture

You have a printer.

Mon, 03/12/2012 - 15:10 | 2248071 whatsinaname
whatsinaname's picture

good for equities ?

Mon, 03/12/2012 - 15:15 | 2248085 redpill
redpill's picture

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

Mon, 03/12/2012 - 15:22 | 2248110 greased up deaf guy
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...

Mon, 03/12/2012 - 15:24 | 2248116 spiral_eyes
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.

Mon, 03/12/2012 - 15:28 | 2248128 LuKOsro
LuKOsro's picture

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

Mon, 03/12/2012 - 15:32 | 2248140 CrashisOptimistic
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.

Mon, 03/12/2012 - 15:40 | 2248166 Buckaroo Banzai
Buckaroo Banzai's picture

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

Mon, 03/12/2012 - 15:42 | 2248170 CrashisOptimistic
CrashisOptimistic's picture

I do remember.

And it was.

And it is.

Mon, 03/12/2012 - 15:44 | 2248180 ilion
ilion's picture

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

Mon, 03/12/2012 - 15:54 | 2248201 WTFx10
WTFx10's picture

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

Mon, 03/12/2012 - 16:22 | 2248324 withnmeans
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...

Mon, 03/12/2012 - 18:46 | 2248835 oldman
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


Mon, 03/12/2012 - 15:39 | 2248165 resurger
resurger's picture

 you can serf in Diego Garcia..

Mon, 03/12/2012 - 15:47 | 2248184 a growing concern
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.

Mon, 03/12/2012 - 15:44 | 2248178 FlyoverCountryS...
FlyoverCountrySchmuck's picture


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

Mon, 03/12/2012 - 15:51 | 2248196 bloostar
bloostar's picture

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

Mon, 03/12/2012 - 15:12 | 2248077 CrashisOptimistic
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.

Mon, 03/12/2012 - 15:13 | 2248079 Popo
Popo's picture

The world is not insane.

It is collapsing.

Next comes war.   It always does.

Mon, 03/12/2012 - 15:27 | 2248120 CrashisOptimistic
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.

Mon, 03/12/2012 - 15:35 | 2248130 redpill
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.


Mon, 03/12/2012 - 17:02 | 2248497 real
real's picture
Central planners, are different then planners based on realistic projections of fuel capacity.
Mon, 03/12/2012 - 18:48 | 2248841 CompassionateFascist
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.

Mon, 03/12/2012 - 16:12 | 2248255 Shizzmoney
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?

Mon, 03/12/2012 - 15:18 | 2248097 lineskis
lineskis's picture

Do You HaZ a PrinZter?

Mon, 03/12/2012 - 15:04 | 2248046 Marge N. Callz
Marge N. Callz's picture

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

Mon, 03/12/2012 - 15:12 | 2248074 Going Loco
Going Loco's picture


Mon, 03/12/2012 - 15:44 | 2248181 Conrad Murray
Conrad Murray's picture

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

Mon, 03/12/2012 - 15:56 | 2248205 resurger
resurger's picture


if it's cloudy = you Sell Stocks

if it's Sunny = you Buy Stocks



Mon, 03/12/2012 - 15:05 | 2248051 Gunga
Gunga's picture

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

Mon, 03/12/2012 - 15:05 | 2248053 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Debt is money.

Mon, 03/12/2012 - 15:11 | 2248075 Buzz Fuzzel
Buzz Fuzzel's picture

Spending other peoples money is Debt.


Mon, 03/12/2012 - 15:06 | 2248054 slewie the pi-rat
slewie the pi-rat's picture

don't tell the the IMF!

we'll get troika'd!

Mon, 03/12/2012 - 15:06 | 2248055 LongSoupLine
LongSoupLine's picture


Mon, 03/12/2012 - 15:06 | 2248056 DavidC
DavidC's picture

Errm, this is not good, right?


Mon, 03/12/2012 - 15:07 | 2248058 Spartan
Spartan's picture

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

Mon, 03/12/2012 - 15:15 | 2248084 LongSoupLine
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

Mon, 03/12/2012 - 16:06 | 2248131 tickhound
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. 


Mon, 03/12/2012 - 15:08 | 2248063 surf0766
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.

Mon, 03/12/2012 - 16:36 | 2248388 Calmyourself
Calmyourself's picture

From whom?

Mon, 03/12/2012 - 15:08 | 2248064 dwdollar
dwdollar's picture

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


Mon, 03/12/2012 - 15:10 | 2248072 e92335i08
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.

Mon, 03/12/2012 - 15:10 | 2248073 Moneyswirth
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!

Mon, 03/12/2012 - 17:04 | 2248511 real
real's picture

there is no fixing this system

Mon, 03/12/2012 - 15:13 | 2248078 Argos
Argos's picture

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

Mon, 03/12/2012 - 15:19 | 2248099 CrashisOptimistic
CrashisOptimistic's picture

Who were you planning to shoot?

Mon, 03/12/2012 - 15:23 | 2248115 LFMayor
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.

Mon, 03/12/2012 - 15:14 | 2248081 Dick Darlington
Dick Darlington's picture

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

Mon, 03/12/2012 - 15:15 | 2248086 navy62802
navy62802's picture

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

Mon, 03/12/2012 - 15:21 | 2248103 Farley
Farley's picture

yes, agree. Mine says delayed till april 17.

Mon, 03/12/2012 - 15:22 | 2248111 Sandy15
Sandy15's picture

We were suppose to get ours in Nov from 2010........ haven't seen it yet


Mon, 03/12/2012 - 15:36 | 2248156 mayhem_korner
mayhem_korner's picture

Speaking of tax refunds


Why are you lending the Federal Gov't your money?

Mon, 03/12/2012 - 15:51 | 2248193 navy62802
navy62802's picture

Because I'm too lazy to change my W-4/.

Mon, 03/12/2012 - 15:52 | 2248198 malek
malek's picture

I'm supposed to get my refund tomorrow. I'll wait and see...

Fri, 03/16/2012 - 21:25 | 2264097 malek
malek's picture

Has been postponed to 3/20... fun times!

Mon, 03/12/2012 - 15:15 | 2248087 Heiman Van Rock...
Heiman Van Rockerchild's picture

That's not my debt, that's the criminal bankers debt

Mon, 03/12/2012 - 15:23 | 2248114 Bansters-in-my-...
Bansters-in-my- feces's picture

Thats "not your debt" but you will pay it and you will like pay it and you will like paying it,understand....?

Mon, 03/12/2012 - 15:16 | 2248088 Dr. Engali
Dr. Engali's picture

Krugman will tell you we aren't borrowing enough.

Mon, 03/12/2012 - 15:17 | 2248094 ilovefreedom
ilovefreedom's picture

That's why I laugh when I see this chart touted by the Obama administration, will surely be a favorite come election time:

And manipulation aside, say they actually "created" jobs. How many were livable wage jobs with benefits? ($50k+)


Mon, 03/12/2012 - 15:18 | 2248098 Ben Burnyankme
Ben Burnyankme's picture

I'd glady pay you with my grandkids earnings for a cheeseburger today.

Mon, 03/12/2012 - 15:19 | 2248101 Bansters-in-my-...
Bansters-in-my- feces's picture

Now,if the USA could stop paying the 500 billion or so a year in interest payments to the snakes,they might start getting ahead.

Right after chopping the budget for the 700 military 130,.....

Mon, 03/12/2012 - 15:22 | 2248109 eddiebe
eddiebe's picture

'Deficits don't matter."    Dick Cheney

Mon, 03/12/2012 - 15:24 | 2248117 Dr. Engali
Dr. Engali's picture

Yeah we get it how many times are you going to post that? Last time I checked Dick Cheney wasn't in power any longer.

Mon, 03/12/2012 - 15:30 | 2248134 Stoploss
Stoploss's picture

The Roman's had deficit expenditures comparable to us today.  History says that didn't work out too well. Deficits were around long before Cheny. After, im not so sure.

Mon, 03/12/2012 - 15:33 | 2248146 eddiebe
eddiebe's picture

Whenever I feel it is pertinent to the subject matter. You're not the only one reading, but thanks for reminding me.

Mon, 03/12/2012 - 15:43 | 2248175 XenoFrog
XenoFrog's picture

Context matters. Look into it.

Mon, 03/12/2012 - 16:01 | 2248215 Calmyourself
Calmyourself's picture

Look, he just admitted it is what he's got..  So let him off the hook about the context and shit it's all the guys got, he posts it over and over if he understood the context of it, what would he post?  jeez..  By the way who is that ?  Flucked?

Mon, 03/12/2012 - 16:00 | 2248213 dick cheneys ghost
dick cheneys ghost's picture

Thats what you Think......



Mon, 03/12/2012 - 15:25 | 2248121 Bansters-in-my-...
Bansters-in-my- feces's picture

"Dick Cheney don't matter". Deficits.

Mon, 03/12/2012 - 15:27 | 2248123 gwar5
gwar5's picture

And those are in nominal USDs. I think the USD is down over 16% the last 3 years.

Mon, 03/12/2012 - 15:27 | 2248124 gwar5
gwar5's picture

And those are in nominal USDs. I think the USD is down over 16% the last 3 years.

Mon, 03/12/2012 - 15:27 | 2248127 Quizzical
Quizzical's picture

Bullish. Small business will use the tax savings to employ millions of Americans.

Mon, 03/12/2012 - 15:31 | 2248138 SDRII
SDRII's picture

·        Explaining the claims drop?  Department of labor total expenditures down to 66B fiscal YTD vs. 113B year ago.  Almost entirely driven by the reduction in payments to the unemployment trust fund 19B vs. 53B year ago.


Mon, 03/12/2012 - 15:37 | 2248158 CrashisOptimistic
CrashisOptimistic's picture

Holy shit.  Why didn't we think of that?

That's how to get new unemployment claims down!  Just don't fund them.  If they aren't funded, they aren't official new claims.

Mon, 03/12/2012 - 15:32 | 2248143 morning_glory
morning_glory's picture

A few unicorns and some pixie dust will fix all this shit.

Mon, 03/12/2012 - 15:33 | 2248145 Seasmoke
Seasmoke's picture

just blame it on leap year

Mon, 03/12/2012 - 15:33 | 2248148 Stoploss
Stoploss's picture

I wonder how much gas prices are supporting those figures?? Hmmm.

Mon, 03/12/2012 - 15:40 | 2248167 Stoploss
Stoploss's picture

Tax revenue is coming from somewhere. Not coming from Gold. Not coming from JOB'S. Hmm. Where is it coming from?? Last time gas was this high, they said demand and supply.

OK, so there is no demand here, or hardly anywhere right now. But, gas is still 4$.

Oh, NOW, it's the new normal.. Right, just the thought of FUTURE demand is enough to keep oil high, right. Six month's ago it was Lybia, right.

Any lights coming on??

Mon, 03/12/2012 - 15:45 | 2248183 CrashisOptimistic
CrashisOptimistic's picture

FYI Libya is up to about 400K bpd less than pre revolution output.

Of course, China is driving about 15 million more cars now burning oil than they did before Libya's revolution.

There is no fix for this.  There is not enough oil flow.  There can't be enough oil flow.

Billions have to die to fix this.  Soon.

Mon, 03/12/2012 - 15:56 | 2248206 dontgoforit
dontgoforit's picture

damn, man.  That's a poopy choice...

Mon, 03/12/2012 - 16:03 | 2248216 Calmyourself
Calmyourself's picture

Soon = next 50-75 years.. Men, take some killing, not that easy..

Mon, 03/12/2012 - 17:54 | 2248690 Baleful Runes 4 U
Baleful Runes 4 U's picture


Mon, 03/12/2012 - 15:34 | 2248150 Everybodys All ...
Everybodys All American's picture

would someone in Congress care to bring these charts to the chaisatan the next time he shows up in front of them stammering bs.

Mon, 03/12/2012 - 15:34 | 2248153 JailBank
JailBank's picture

New currency for those that can't get gold or silver

It’s a dirty job: Police nationwide take on soaring Tide detergent theft

Tide has become a form of currency on the streets. The retail price is steadily high — roughly $10 to $20 a bottle — and it’s a staple in households across socioeconomic classes.
Tide can go for $5 to $10 a bottle on the black market, authorities say. Enterprising laundry soap peddlers even resell bottles to stores.

Mon, 03/12/2012 - 16:00 | 2248212 Conrad Murray
Conrad Murray's picture

The soap-making business is the place to be.

Mon, 03/12/2012 - 16:13 | 2248269 LFMayor
LFMayor's picture

Yes!  Plump banksters and hickory ashes and we'll have the finest, smoothest soap on the market.

Tue, 03/13/2012 - 03:55 | 2249719 StychoKiller
StychoKiller's picture

Do they deliver like Amway® distributors?

Mon, 03/12/2012 - 15:35 | 2248155 resurger
resurger's picture

whats with the news about GS to make profits in bonds?


Mon, 03/12/2012 - 15:38 | 2248160 Hobbleknee
Hobbleknee's picture


Mon, 03/12/2012 - 15:42 | 2248169 jplotinus
jplotinus's picture

$trillion deficits came out of nowhere but appear to be here to stay. In 2008, a record debt of <$500billion was recorded. Granted, records are made to be broken, but normally in small incremental steps, not by multiples.

The 2009 deficit was, what, $1.5trillion, or triple the previous record debt. And, each year since 09 the deficit has been >$1trillion. I would not have thought that level of debt could be sustained this long.

Mon, 03/12/2012 - 15:42 | 2248171 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...the fed funds the deficit by printing.It will now do so until collapse (which might be years away). At that point they will also own alot of gold , silver, real estate etc etc and pretty much every stock. Then they reset to a new currency and are the new global monarchs. You cannot fight monopolists in money creation whilst the societal paradigm continues that cash has purchasing value retention (or has doesn't under CB's meglomania). Oil prices will stop them I hear you say? Political pressure will force them to stop?  Maybe, but I doubt it. The general society (sheeple, Joe 6pack etc) just do not understand enough about credit/money/inflation etc. Sad really. Me? I live in New Zealand on a 10 acre block of farm land near a beautiful coast. I can see where all this ends. Have got gold (and yes, guns, but they are for rabbit

Mon, 03/12/2012 - 15:55 | 2248186 LawsofPhysics
LawsofPhysics's picture

My brother lives on the south island with a simliar spread.  If you think the "average" person in New Zealand isn't a bloody sheep, you have not been paying attention.  I visit him often.  Lots of sheep on the government tit in New Zealand.  However, my brother's only real concern is the proximity to China and the lack of a real military.  Good luck, because when the big power shift occurs, the elite will take what they fucking want.  Time for you to get some like-minded, trustworthy neighbors.  Your government is setting you up for failure.  I have looked into investing capital in New Zealand and extending an operation there.  For every one productive person I employ, they want me to support ten unproductive people, fuck that.  Capital and productive labor always goes where it is welcome, always.  Going to be a real bitch went that is Mars.

Mon, 03/12/2012 - 15:58 | 2248208 malek
malek's picture

You have nicely laid out the reasons that made me refrain from attempting immigration to New Zealand.

Mon, 03/12/2012 - 17:04 | 2248510 LawsofPhysics
LawsofPhysics's picture

Very subtle hint, China already owns most of Autrialia.  Sorry, should have made that clear.

Mon, 03/12/2012 - 16:31 | 2248368 Non Passaran
Non Passaran's picture

The proximity to China? I haven't measured, but if that's near, then Alaska isn't far either

Mon, 03/12/2012 - 16:14 | 2248276 LFMayor
LFMayor's picture

Is that you, Dotcom?

Mon, 03/12/2012 - 15:53 | 2248176 LawsofPhysics
LawsofPhysics's picture

What's that word again?  Oh yeah, how sustainable is this?  I guess the rich will be building their own sewers, streets, and schools.  Moreover, I guess they plan to hire there own firefighters and security officers.  Will they be arming and paying their own armies too?

Fucking bring it.

Mon, 03/12/2012 - 15:49 | 2248188 mayhem_korner
mayhem_korner's picture



Not only is this a nice depiction of a transition from random to systemic, but it's notable that the nine largest monthly deficits in history have all occurred in the last ~26 months. 

(And 9 in 26 = .346, which will win you the batting title most years)

Mon, 03/12/2012 - 15:53 | 2248195 lunaticfringe
lunaticfringe's picture

Geezus Tyler, you "rack" up debt, you don't "rake" it.

Damn man, there goes a chick with a nice rake. It just doesn't hold any special meaning for me. I mean normally I wouldn't bust yer balls 'cause I like youse guys, but you did use the word in the title...

Mon, 03/12/2012 - 15:52 | 2248200 dontgoforit
dontgoforit's picture

...well, it was a 'leap' year month...

Mon, 03/12/2012 - 15:55 | 2248202 Derpmonger
Derpmonger's picture

Tax revenues are quaint relics.

Mon, 03/12/2012 - 15:55 | 2248204 LawsofPhysics
LawsofPhysics's picture

Like Gold?  Just saying, is this tradition or not?

Mon, 03/12/2012 - 15:59 | 2248203 monopoly
monopoly's picture

And the markets just do not give a shit. Carry on. Beyond words.

And just to confirm, there goes AAPL. 

Mon, 03/12/2012 - 15:59 | 2248210 resurger
resurger's picture

The problem is that investors know this shit is just a fraud, but they make money and they like it... (untill reality hits)


Mon, 03/12/2012 - 15:59 | 2248207 bbq on whitehou...
bbq on whitehouse lawn's picture

Everytime i see charts like these i have to wonder, about those who have college degrees, a nice house, car, savings plans and debt they seem to manage.

I see them all the time out my window on the golf course or walking their dogs.  Why havent they run screaming from the building, in wild eyed panic.

Why haven't the accountants with thier personal funds pulled them and flooded into gold/silver or at least screamed their bloody head off in panic.

Its like seeing a small child on the railroad tracks telling the other playing children that a train is coming in a soft whisper.

Who will scream first "run"?

Someone is going to have to cause a panic, the train is coming.

Mon, 03/12/2012 - 15:59 | 2248209 HurricaneSeason
HurricaneSeason's picture

The best thing to do is have a negative interest rate on the national debt until we can get past this bump. Have the Federal Reserve and Chinese pay 5% per year to hold the treasuries for the next 10 years at which point they'll be compensated for the negative interest. That will provide liquidity while keeping inflation down.

Mon, 03/12/2012 - 16:08 | 2248239 bbq on whitehou...
bbq on whitehouse lawn's picture

Depresions are fun so lets spread the joy to the world paying the US 5% of the US treasury's they bought.

Or just buy them all back at par, with money we would have to print.

Mon, 03/12/2012 - 16:29 | 2248359 moonman
moonman's picture

Does that also mean that we would in turn have to pay the banks to hold our money? I mean almost zero interest is bullshit enough but to pay the bank interest on my own money????

Mon, 03/12/2012 - 17:45 | 2248659 HurricaneSeason
HurricaneSeason's picture

Only if your bank buys treasury bonds. Then, it'd also be tax deductable for the bank customers if they lose over a certain amount.

Mon, 03/12/2012 - 16:03 | 2248217 ajk24455
ajk24455's picture

So I just googled Debt ceiling and a few variations like current debt ceiling etc... Every article I click on from that point says error 404 or can't find page.  My computer is working fine.  Can someone else confirm this?

Mon, 03/12/2012 - 16:13 | 2248273 bbq on whitehou...
bbq on whitehouse lawn's picture

The problem is on your end or with your provider.

Mon, 03/12/2012 - 16:07 | 2248231 Olympia
Olympia's picture

Something serious should have taken place, so that the “Superpower" owes 14.5 trillion dollars. Such a "broke superpower" has never been before. The world has never seen before "World rulers" who surrender to pain because cancer medication costs. World rulers, who, when they lose their jobs, go straight to the “garbage”, have never existed not even in the years of Genghis Khan. There should be a problem somewhere and that’s what we are seeking. It’s not possible for someone to eat night and day and to risk dying of malnutrition. It is obviously that this person is severely “ill" and that’s what threatens him with death. This is the case in USA. They take advantage the resources of the whole planet and they have “managed" to be threatened today with bankruptcy. They are doing something wrong. Something is wrong in their “organism”. Some internal "cancerous" agent "sucks" all their inflow and lets them crawl to "death".

Global Debt Crisis

World War III - The first private War in history

Authored by Panagiotis TRAIANOU.

Mon, 03/12/2012 - 16:19 | 2248299 walküre
walküre's picture

Some internal "cancerous" agent "sucks" all their inflow and lets them crawl to "death".

The cancer is incurable. The patient is terminally ill. Stage 4 with a few more weeks, months maybe. Spreading to other parts of the world quickly.

Default would have to be global. Greece is setting the precedent - again. Greece gave birth to democracy and Greece gave birth to the collapse of the banking system, quite literally the end of the world as we knew it.

The Greek debt default has historical magnitude like no other default before it. Few minds can figure this out and comprehend just what exactly happened and just how important it will be going forward.

Biblical, even to non-believers.

Mon, 03/12/2012 - 16:59 | 2248486 Olympia
Olympia's picture

I can only agree with you.

History shall repeat itself in a far greater scale and therefore the benefit for the leading roles shall be much greater. If ancient Greeks won the battle against the barbarity of the East in favour of Europe, then modern Greeks are those who are meant to win the battle against the barbarity of both Eastern and Western world in favour of the human kind. The world has become a little “village” and in this “village” everyone knows what the character of the others is.

I think you will also like to read this article


Mon, 03/12/2012 - 16:28 | 2248354 NumberNone
NumberNone's picture

The beast is about to get hungry...very hungry.  Alot of people are about to get their naive asses knocked for a loop about just how unfriendly this government can be and how much they really don't give a shit about anyone or anything but self-preservation. 

Mon, 03/12/2012 - 17:55 | 2248693 Olympia
Olympia's picture

People should start getting ready for great trials ...for International Courts, where the current loan sharks shall give account. Monetarism criminals should sit on the same benches that once sat Nazi criminals. Rothschild, Rockefeller, Greenspan, Bernanke, Trichet, Soros, Buffett –and other “kids” of the loan sharking- should not sleep calmly from this point on. So, should also do their Quisling-type partners ...all the traitors who undertook power supported by the Monetarists and exercised leadership at the expense of their people ...Merkel, Sarkozy, Barroso, Zapatero, Papandreou and others.

 The world is getting “awake” from “narcosis” and pity to the one who shall be found to have made the wrong at the wrong time ...pity to the one who “sedated” them to “rape” them ...pity to the one who shall be found holding the criminal “tube” ...pity to the one who threatened the future of the human kind.

By Panagiotis TRAIANOU

Mon, 03/12/2012 - 16:29 | 2248357 daxtonbrown
daxtonbrown's picture

Every chart shows the economic freight train going off the rails, through an oil depot, into a crowded stadium and exploding. The only question is when.
We used to think cutting taxes would “starve the beast”, but what has happened is the Federal Reserve is now printing up Monopoly money to fill the gap between government revenues and outlays. The Fed now enables deficit spending through debasemant of the dollar.
But here is the real kick in the nuts. We all naively thought that increased money supply would result in immediate hyperinflation which would limit the Fed. But what the printed money has done is to both cause inflation AND deflation, which to an extent nets out. Thus gas and food go up, but wages and home prices go down.
Biflation is possible because GDP=M*V, which has two independent variables. As M goes up you can get inflation (stock market rising) but velocity V gets crushed as everyone loses trust and hordes money. The double whammy of biflation, thus leading to a Biflationary Depression even as Obama touts green shoots.
I’ve been trying to create a Biflationary Index which cuts out all the fake Ministry of Disinformation numbers. I’ve been using Gold, the Job Participation Rate, the real rate of return (interest rate minus inflation, though the inflation number is rigged it is at least consistent), Case Shiller. I should add the tax receipts.
I’ve really written some pretty interesting stuff here.

Mon, 03/12/2012 - 16:42 | 2248406 Frank N. Beans
Frank N. Beans's picture

does it really matter whether or not I pay my taxes?? 

does it REALLY matter, when they can just print??? 

hell, i should be asking for a FULL refund!!!!!!!!!

Mon, 03/12/2012 - 16:50 | 2248442 ivars
Mon, 03/12/2012 - 16:57 | 2248480 farmerjohn2112
farmerjohn2112's picture

Biggest 'news' story I saw all day... wonder if old Brian Williams will talk about it on Nightly News tonight @_@

Mon, 03/12/2012 - 17:21 | 2248574 Ned Zeppelin
Ned Zeppelin's picture

No reason to panic.  I haven't written my +/- $20K tax check yet. 

Mon, 03/12/2012 - 17:31 | 2248624 Tsar Pointless
Tsar Pointless's picture

EconoDay has nothing but good things to say about this deficit number.

Improvement underway in the economy is reflected in improvement for the Treasury's budget deficit which, four months into the government' fiscal year, is running 9.4 percent below last year. Calendar shifts are playing a role in the improvement, excluding which the fiscal year-to-date deficit is running 3.3 percent below last year. The receipt side of the ledger shows mostly gains led by corporate income taxes. The outlay side shows mostly declines with the exception of net interest payments. The deficit for the month of February is $231.7 billion.

No mention of a monthly deficit record in February.

Mon, 03/12/2012 - 17:36 | 2248636 alfred b.
alfred b.'s picture

In 2001, the CBO predicted that in 2011 the US National Debt would be @ 2.5 Trillion....and those idiots are still predicting stuff and whatever???
For sure, the inmates have taken over the asylum!

Mon, 03/12/2012 - 18:36 | 2248806 non_anon
non_anon's picture

we've long past the point of no return, but TPTB will not confess their crimes and high treason

Mon, 03/12/2012 - 18:54 | 2248860 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

@ law of physics...I am well aware of the NZ govt's ineptitude and do not trust our ex Merrill Lynch's head of global FX  PM (John Key) one iota. I am insulated somewhat from their predations...but not insular.

Tue, 03/13/2012 - 00:53 | 2249621 Peter K
Peter K's picture

The true meaning of HopyChange:(

Tue, 03/13/2012 - 02:03 | 2249669 cnhedge
cnhedge's picture

the debt is growing like crazy.

Tue, 03/13/2012 - 05:55 | 2249753 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

So, gubmint is racking up deficit of $25 PER DAY PER MAN WMAN AND CHILD. Per day. Every day. Day after day after day. What is that, like $100 per day per productive citizen? And growing. Truly fricking nuts. Truly.

Huge and unpleasant change is coming to this country. Absolutely has to be.

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