Party On

US More Bankrupt Than Ever - $83 Billion April Deficit Is Record For The Month, $30 Billion Worse Than Expected As Tax Receipts Plunge

 

Well, if nothing else, we now know officially just how great those tax receipts were. , and yes. We were right. April's tax deficit of $83 billion was the highest April deficit on record. America is now more bankrupt than ever. Income was $245.3 billion, 8% below the total recorded last April. Spending was $328.0 billion, up 14% year-over-year. A year ago in April the deficit was $20.9 billion. And here is the data: tax receipts down 7.9% YoY, Individual Income Tax down 21.5% YoY, and more importantly, spending: Total spending up 14.2%, National defense up 17%, Medicare up 39.4%, Social Security up 4.2% and General Government up 5.6%. At least interest payments were down 9.5%.
And now back to your regularly scheduled bankrupt country market melt up.

Please don't laugh and criticize the problems PIIGS are going through ........ we sure as hell aren't far behind.
Update:
As Karl reminds us, what our trusted friends in DC show us is the Unified Budget and not what we really borrow. Also our friends do not include the costs associated with Fannie & Freddie......... how convenient.

$82 billion my butt.  The real number is $175.6 billion, more than double the reported amount, and the cumulative year-to-date (calendar years) is $637.4 billion, or a run rate (annualized) of $1.912 trillion.

If you're wondering why the "stock market" has been generally supported (even though it's not up much from the first of the year) this is the reason - the government is spending roughly 13% of GDP beyond what it collects in taxes!

National Debt:
4/1/2010    $12,773,123,096,139.43
4/30/2010  $12,948,738,915,856.86
That's a $175 billion difference not $83b

The unified budget totals are often divided into two parts, those from off-budget and on-budget items. Currently, Social Security and the Postal Service are off-budget. However, reports on the budget (both official and in the mass media) often include both on- and off-budget items. This makes the current budget picture rosier, as Social Security is running large surpluses. On the other hand, the budget does not reflect future liabilities of Social Security, Medicare, or pension insurance; these potential liabilities, together, are in the trillions of dollars.
Government-sponsored entities are private entities established and implicitly backed by the government, such as the Federal National Mortgate Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac); they are excluded from the budget. The budget does, however, reflect liabilities of government-owned enterprises.