For 11/13/2012 the US government ran a surplus of $1.0B on revenue of $12.8B and 11.8B of expense. Don’t expect this to carry into tomorrow though. Social Security benefits go out the second, third, and fourth Wednesday’s of the month, so tomorrow’s report will likely have us at a $10-$15B daily deficit for 11/14. Quick math…that’s almost $50 per person in the United States….$250 for a family of 5. Yikes!! Maybe I should eat in tonight 🙂
Just a note, the DTS are typically released the following business day at 4PM EST. The deficit for last Friday, 11/9 was $4.8B on revenue of $5.3B and spending of $10.0B. Yes..these are rounded. Here’s how the month is looking through 9 days:
Through 9 days, the November deficit is $68.7B, an $8.8B improvement over 2011. Don’t get too excited yet. Revenue and cost are highly variable, and fluctuate depending on the day of the week and payment schedules.
In 2000, the national debt was $5.7T and actually dropping. As I write this, the debt is $16.2T, and increasing at about $1.2T per year. What happened? How did we get here and where does it look like we are headed? The Daily treasury Statement (DTS) gives us the data we need to dig in and figure it out. The chart below shows us Revenue, Expenses, and Deficit (CASH) for 2000 and 2011
It’s not really too hard to spot the problem.
Revenue has increased from $2.1T per year to $2.6T, a 23% increase. Spending…on the other hand, goes from $1.8T to nearly $3.9T…more than a clean double. For reference, population increased about 10% over this time period. Those are the facts.
So think about that. We are running about a $1.2T annual deficit. Regarding the upcoming “Fiscal Cliff” the spending cuts on the table don’t even add up to $100B per year. If we, as a nation can’t even fathom a 2.5% cut to federal spening in a given year, it’s quite clear that we aren’t not even close to being serious about this. At this point in time, I can’t even envision a good outcome. I’ll go ahead and say it….this debt will never be repaid.