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.

 

Misplaced Burrito Triggers SF Bomb Squad Response

SAN FRANCISCO -- A suspicious package containing a burrito disrupted San Francisco Municipal Railway Service in the city's Sunset District early Tuesday and prompted a response by the bomb squad. Transit officials called the police after the package was discovered at 35th Avenue and Judah Street at around 8:48 a.m. Light rail service on the N-Judah line was disrupted during the investigation and bus shuttles were set up, Muni spokeswoman Kristen Holland said. Police concluded their investigation at 10:30 a.m. after determining there was no risk to the public and light rail service resumed, Officer Boaz Mariles said.A witness on the scene reported the package was found to contain a burrito.

Police gathered up other suspicious packages found throughout the city and had lunch.

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Fannie Mae Needs $8.4 Billion More

It has gone from scary to hysterical. Fannie doesn't even generate enough revenue to cover the interest payment on the money it has borrowed. Do ya think they will ever be able to?  Doesn't matter cuz we have the tea party and they will make sure the gov don't raise taxes to pay for all this stuff. Ya they will demonstrate and pay Palin to speak at the rallys and  that, oh ya, that will send Washington a message. Oh ya.

When Treasury provides the requested funds, the aggregate liquidation preference on the senior preferred stock will be $84.6billion, which will require an annualized dividend of approximately $8.5 billion. This amount exceeds our reported annual net income for each of the last eight fiscal years, in most cases by a significant margin.

Karl sums it up.....


David Walker, the former US Comptroller General (accountant) who resigned  after, I believe 8 years, trying to convince our dumbass leaders that the US is headed for bankruptcy, and even hit all media outlets like 60 minutes, 20/20.... etc even toured the US with a "Fiscal Wake Up Tour" to alert us folks of why we must change the direction of this country. He is a great speaker and is worth a google or youtube search to see what he has to say.
Anywho David was on MSNBC this morn and he was saying we are worse off than Italy, UK, Spain.....etc. and will be like Greece in 5 to 10 years if we don't start living within our means. Taxes are going up he said, they have to. We have no choice.
Oh and by the way Greece will default, this so called bailout is just kicking the can down the road. Greece, like Fannie and Freddie, can't even generate enough revenue to make the interest payment on the money they owe. But yet they are borrowing more.
Food for thought: If we had to pay the same 10 year yields as we did back in the 90's, the interest on our debt would cost roughly $800B to $1.2T a year. If we had to pay the same yields as we did back in the 80's it would cost us around $1.5 to $2 Trillion. It now costs around $450B.
Can you imagine all the income taxes and corporate taxes we collect going just to pay for the interest on our debt? What a shame.
Think about it.
Someday Americans will have to ask themselves before we invade another country, extend unemployment beni's , add more food stamp recipients, finance more cars and homes, promise more prescription drug or healthcare coverage....... etc........... "Can we afford it"?
Something we haven't had to ask our gov in many moons.
As David Walker said, "There are two kinds of taxes....... current, the kind you pay now, and deferred, the kind you have future taxpayers pay, also called deficits".
 

But Of Course

The government spent $175 million investigating the Challenger space shuttle disaster. 

It spent $152 million on the the Columbia disaster investigation.
 

It spent $30 million investigating the Monica Lewinsky scandal.
The government only authorized $15 million for the 9/11 Commission.

And how much has the government authorized for the Financial Crisis Inquiry Commission? You know, the commission charged with getting to the bottom of what caused the financial crisis?
Just $8 million.

 

Well we spent a ton of money cuz we needed to know what caused the shuttles to blow up and those pesky tiles to fall off.

Monica, well we needed to know what a sexual relation meant and what to use to get stains out.

I think we over spent on the 9/11 thingy cuz we all knew it was crazy Arabs that hate America cuz our women wear hardly any clothes and the buildings fell due to kerosene and office supplies. Duh.

 

$8 million wasted when all you have to do is listen to Glenn Beck, Rush or Hannity and they will explain to you the reason we had a finacial crisis was cuz of Barney Frank, Clinton years, ACORN and black people who couldn't afford their mortgages cuz they were out buying drugs, ale and bling bling.

Stream Runner

One thing Jake loves to do is run in brooks. It's so funny to watch.

Suspicious Package

Exterior Auto Works has been cleared of all personnel due to a suspicious package found in the refrigerator.
Reports indicate the package resembles a 12 pack of Bud Lite Lime but the owner is not taking any chances and is vacating the area of the building where work is preformed.
"It's for every ones safety" said the owner Mark Dufresne, "I have found these type of packages before, but for some reason don't recall what was inside, this time I'm taking no chances".

Hey

Freddie Mac Falls After Seeking $10.6 Billion From Treasury

LOL........

And there are many out there who think we have nothing in common with Greece.
Lock and load.

BusinessWeek

Jake

What have we gotten ourselves into.

A big thanks to Ray, Dawn and Trev for giving us first dibs on Jake.
Although we called them after just 36 hrs and said he was too much and that we couldn't do it.......even had all his stuff packed waiting to get picked up.............but the little shit grew on us with every passing moment.
Too many pros and not enough cons to say no.
I mean he even shits in the woods.......... come on...... ya can't get any better than that.

Some fine tuning (chases cats, eats their food) but nothing that can't be solved.