Us Posts Biggest March Budget Deficit In History

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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.

Another record for the greatest ever recovery.

Clearly the US govt is doing it's bit to drive forward the debt led recovery.

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Meanwhile on Bloomberg:

Fed Says Economy Grew at 'Modest to Moderate' Pace in March

Inflation was “modest,” the report said, and “upward pressure on wages was constrained.”

“While the near-term outlook for household spending was encouraging, contacts in several districts expressed concerns that rising gas prices could limit discretionary spending in the months to come,”...

It's all fine. No financial meltdown to see here...

Edit - quotes

Edited by Voice of Reason

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Unless it's also the only Election year in history, that isn't much of an explanation.

Hmmm.. The US has elections every 2 years (Presidential/Midterm). Campaigning goes on for at least a year. Economic policy takes at least a year to have full effect.

Think you may be on to something here..

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