U. S. In Nov Spent $150Bn More Than It Took In Taxes

[interestrateripoff]

http://market-ticker.org/akcs-www?post=174636

Not "Mortgage Backed Security", rather, "More Bull S@2t."

The WSJ says....

The Treasury Department, in its regular budget monthly statement, said the government spent $150.4 billion more than it collected in the second month of fiscal 2011.

Once again what the Treasury borrows is not what they report.

Play all the balance sheet games you want Treasury, this is what I say to it:

That's almost $192 billion of debt added in the month of November.

So once again, I'll call it as I see it, and as I see it, the government spent $192 billion more than it took in, and I'm willing to bet that if you get rid of all the balance-sheet games (including stealing FICA receipts) this is what you'd find.

PS: This figure is "noisy", but I report it every month anyway as soon as the "Debt to the Penny" numbers come out. After all, we have a Treasury Secretary who can't do his taxes - why would I believe he can properly add a budget deficit. This much I'm sure of - nobody let's you falsify a deposit ticket, and the money thus garnered from the borrowing has an actual finite, no-finagle, no-games number to it.

See link for Dennigers calculation as to why he thinks it's really $192bn.

The US is clearly borrowing a huge amount of money, I have no idea if Nov is traditional a good/bad month for tax revenues in the US but if they keep this up they are going to have to borrow $1.5tr+ this year alone. All borrowing demand from the future, at some point they are going to hit the debt compound problem.

Still I'm sure it's not a problem, govts aren't like individuals they can perpetually spend money they don't have balanced budgets are pointless.

Edited December 11, 2010 by interestrateripoff

[ken_ichikawa]

Your post is pointless. THe government has a printing press and they aren't afraid to use it! Remember QE3 is being discussed now only a month after QE2!

[interestrateripoff]

Your post is pointless. THe government has a printing press and they aren't afraid to use it! Remember QE3 is being discussed now only a month after QE2!

As long as monopoly money is viewed as valuable the magic printing press can work wonders at shoring up the deficit.

The magic printing press has never failed to work it's magic in the past.

[ken_ichikawa]

As long as monopoly money is viewed as valuable the magic printing press can work wonders at shoring up the deficit.

The magic printing press has never failed to work it's magic in the past.

It won't work but they'll print quintillions of dollars (daily) to prove you wrong.

[interestrateripoff]

It won't work but they'll print quintillions of dollars (daily) to prove you wrong.

In the world of electronic money they can create it faster than inflation.

Just think how confused everyone will be having to pay a quintillion for a loaf of bread.

Although I quite like Nonillion, it seems to have an ironic ring to it.

[Timak]

Oh well another massive unfunded $4tr tax cut should plug that deficit.

After all the Laffer curve is now represented as a straight line in most US discussions.

[Saving For a Space Ship]

On a related note that may be of interest ......

19:15

BBC Radio 4

Sunday 12/12/2010

Gore Vidal; the USA's history and current relationship with debt.

Americana

Alice Rivlin, the first director of the United States Congressional Budget Office and Christopher Whalen, the author of 'Inflated: How Money and Debt Built the American Dream', discuss America's relationship with debt and the prospects for improvement in the future.

Presenter Richard Wolffe talks to Gore Vidal. The internationally renowned essayist, playwright, and dramatist reflects on what made America great and what threatens the strength of the nation.

And during this lame duck session of the United States Congress, Americana heads to the fields of Iowa to talk to champion duck caller Todd Copley about what can be accomplished outside of the Congressional chambers.

AMERICAN DEBT

Alice Rivlin was the first director of the United States Congressional Budget Office and has remained an advisor and expert in finance throughout her career. Christopher Whalen is the author of, “Inflated: How Money and Debt Built the American Dream.” The two discuss America’s relationship with debt and the prospects for improvement in the future.

[Errol]

Nothing to see here. Nothing to be concerned about. It's all contained.

[tahoma]

I like the thread title. It sounds like Cletus from the Simpsons, which may be appropriate.

[Ruffneck]

no biggie , i'm sure they'll have no problem helping cough up some of the 100 billion a year developed countries will need to give to 3rd world economies by 2020 then according to the deal brokered out at the Cancun climate summit?

[leicestersq]

no biggie , i'm sure they'll have no problem helping cough up some of the 100 billion a year developed countries will need to give to 3rd world economies by 2020 then according to the deal brokered out at the Cancun climate summit?

Presumably the planners at the US expect to be on the receiving end of that aid in 2020?

[interestrateripoff]

I like the thread title. It sounds like Cletus from the Simpsons, which may be appropriate.

Fixed that now.

[interestrateripoff]

Oh well another massive unfunded $4tr tax cut should plug that deficit.

After all the Laffer curve is now represented as a straight line in most US discussions.

You have to admit it's a rather novel way of dealing with a deficit problem.

When Reagan tried it, the results were pretty spectacular.

[fluffy666]

Oh well another massive unfunded $4tr tax cut should plug that deficit.

After all the Laffer curve is now represented as a straight line in most US discussions.

0% Tax = Infinite revenues. Can't fail.

[scepticus]

As long as monopoly money is viewed as valuable the magic printing press can work wonders at shoring up the deficit.

it doesn't need to be valuable ripoff it just needs to serve as a medium of exchange.

So as long as it more or less buys the same as it did a year ago give or take a few percent that'll do.

[cashinmattress]

Well, when you consider that the cost of the Iraq war from 2003 onwards is around 800 billion USD,and that there are 140 billion barrels of proven reserves there which are now 'owned' by the Yanks, which at today's price of ± $90 USD/barrel, America is on pretty good standing. Plus they have some great geography to project their power, ie USCENTCOM.

All the talk of their demise is vastly out of touch with the reality of the situation.

Britain on the other hand, has almost no expeditionary forces.

[interestrateripoff]

it doesn't need to be valuable ripoff it just needs to serve as a medium of exchange.

So as long as it more or less buys the same as it did a year ago give or take a few percent that'll do.

I agree, as long as people view it has value it will have value.

It's the same with any means of exchange, as long as the majority agree it has a useful tradeable value then it works.

[fluffy666]

All the talk of their demise is vastly out of touch with the reality of the situation.

Britain on the other hand, has almost no expeditionary forces.

It's OK, we'll have a couple of aircraft carriers soon. PPPOOOOOOWWWWWWWEEEEERRRRRRRRRRRRR!!!!!!!!!

Bet you get all picky now..

[cashinmattress]

It's OK, we'll have a couple of aircraft carriers soon. PPPOOOOOOWWWWWWWEEEEERRRRRRRRRRRRR!!!!!!!!!

Bet you get all picky now..

I have mates in the mob, all branches, and they all say the same thing. It's pathetically under funded.

Depends on what you want I suppose.

[scepticus]

I agree, as long as people view it has value it will have value.

It's the same with any means of exchange, as long as the majority agree it has a useful tradeable value then it works.

well then you should see that if printing some more units is what it takes for the means of exchange to remain viable then that is all that matters.

adding units or taking them away, and price levels as measured in the unit of account are not relevant, what matters is that people keep trading with each other.

because that latter is where the value is.

people trading freely will establish their own stores of value - there is no need to rely on the exchange medium or unit of account for that function. The worst possible thing that can happen for free trade is that the medium of exchange is decreed to be a store of value.

[Bloo Loo]

well then you should see that if printing some more units is what it takes for the means of exchange to remain viable then that is all that matters.

adding units or taking them away, and price levels as measured in the unit of account are not relevant, what matters is that people keep trading with each other.

because that latter is where the value is.

people trading freely will establish their own stores of value - there is no need to rely on the exchange medium or unit of account for that function. The worst possible thing that can happen for free trade is that the medium of exchange is decreed to be a store of value.

You are The Bernanke, owner of The J P Morgan, and I claim my $5INJIN.

may your pension be defaulted.

[Meat Puppet]

people trading freely will establish their own stores of value - there is no need to rely on the exchange medium or unit of account for that function. The worst possible thing that can happen for free trade is that the medium of exchange is decreed to be a store of value.

Guess they are going to have to rewrite all the monetary economics, hell all the economics, textbooks then. I'm sure all the trading algos will converge on a concensus for a store of value every nanosecond. Does it mean that the hamster wheel will eventually reach infinite speed?

[Guest The Relaxation Suite]

http://market-ticker.org/akcs-www?post=174636

See link for Dennigers calculation as to why he thinks it's really $192bn.

The US is clearly borrowing a huge amount of money, I have no idea if Nov is traditional a good/bad month for tax revenues in the US but if they keep this up they are going to have to borrow $1.5tr+ this year alone. All borrowing demand from the future, at some point they are going to hit the debt compound problem.

Still I'm sure it's not a problem, govts aren't like individuals they can perpetually spend money they don't have balanced budgets are pointless.

.

Edited December 11, 2010 by Tecumseh

[Guest The Relaxation Suite]

http://market-ticker.org/akcs-www?post=174636

See link for Dennigers calculation as to why he thinks it's really $192bn.

The US is clearly borrowing a huge amount of money, I have no idea if Nov is traditional a good/bad month for tax revenues in the US but if they keep this up they are going to have to borrow $1.5tr+ this year alone. All borrowing demand from the future, at some point they are going to hit the debt compound problem.

Still I'm sure it's not a problem, govts aren't like individuals they can perpetually spend money they don't have balanced budgets are pointless.

Please select from the following menu:

1. Sovereign debt default.

2. Hyperinflation

3. World War III

I know which one they're going to pick, do you?

[scepticus]

Guess they are going to have to rewrite all the monetary economics, hell all the economics, textbooks then.

best just to bin them I would have thought. They always were just ghost stories anyway.

I'm sure all the trading algos will converge on a concensus for a store of value every nanosecond. Does it mean that the hamster wheel will eventually reach infinite speed?

What do you think?