Category

Daily Deficit

Jun 19
0

6/17/2013 Daily US Cash Deficit

By | Daily Deficit

The US Daily Cash Surplus for 6/17/2013 was $62.7B on typically strong Monday revenues plus nearly $43B of corporate tax receipts. Note that this was not unexpected…we see this surge on the 15th of every quarter end month…this time delayed by a couple of days due to the weekend. Now…no getting around it…a 62B surplus is big…but what really matters is how we look compared to last year. As it stands, corporate taxes are up YOY by 9%. It’s definitely a good number, but considering that our five month average coming into June was 20% YOY…it is definitely a break in the trend. The month isn’t over…but if the historical trend holds….we can expect less than  $1B to trickle in for the rest of the month in addition to the $62B already received…so absent a break in that pattern…9% is about where we will end up. The evidence is starting to mount indicating that the large revenue increases we saw from Jan-April are not going to be sustainable.

06-17-2013 USDD

So with corporate taxes mostly behind us, up next are “taxes not withheld.” Remember..this is regular income and payroll taxes not withheld from paychecks like most people pay their taxes. This is going to be small business owners, investors….you 1%er type. This is where we saw a huge surge during the first part of the year….my hypothesis is that this was a one time spike due to the 2013 tax hikes. There are 4 months a year with large “taxes not withheld” spikes. January, April, June, and September. Don’t ask me why…but that’s the pattern. The rest of the months typically show less than $10B or so. If my hypothesis is correct….we should see a significant reduction in the YOY growth. In April the growth was 40%. June will provide us the first clean glimpse of 2013, unaffected by tax avoidance transactions. Right now, the YOY is -18%, but this is a rather small population. We should see most of the receipts come in this week. The YOY increase through 5 months was 29%…a significant deviation from that trend would provide pretty solid evidence to confirm the hypothesis….we’ll know by the end of the week.

Finally, just wanted to note that cash in hand has now grown to $113B though we are still up against the debt limit. This is quite a turnaround after bottoming out at $11.5B just two weeks ago in 6/3. Expect this to grow a bit more, especially when that $60B Fannie Mae payment comes through. Then, expect a downward plunge for July-August. A flat September might just squeak is by into the new FY in October. After that, a debt limit rise will be essential due to a low cash balance and ~250B or so of expected deficits between October and November.

Jun 18
0

6/14/2013 Daily US Cash Deficit

By | Daily Deficit

The US Daily Cash Surplus for 6/14/2013 was $17B as corporate taxes started flowing in. Though due 6/15…with the 15th on Saturday, $14B of corporate taxes flowed into federal coffersa day early…expect another $30-$40B before the week is out.

06-14-2013 USDD

At first glance…the charts look fairly impressive but a lot of this is timing due to a lot of corporate tax payments being made 6/14 that were made 6/15 last year. This should all flush out in a few days. On the cost side….adding back in the $30B we’ve been discussing for a while shows that cost is still flat….no surprises there.

Tomorrow’s report (for today) should show the majority of the remaining corporate taxes we will see in June. Through 5 months, 2013 corporate taxes have been running about 20% over last year….seeing how June compares to that rate should be a very interesting indicator.


Jun 17
0

6/13/2013 Daily US Cash Deficit

By | Daily Deficit

I’m back…

06-13-2013 vacation deficits

Didn’t really miss a whole lot…the above chart shows the daily deficit for the six days I missed.

06-13-2013 USDD

Above is our standard chart for 6/13. Nothing is really in sync, but we have revenue up $12B for a 13% YOY increase. It looks impressive, but I wouldn’t put too much faith in that…yet. If it still looks like that at the end of this week after all the quarterly tax receipts are in…it will be an impressive number.

Costs are down $31B….just about all due to timing…adjusted for that, we are pretty much flat. And of course the deficit follows these…a $42B improvement….which should only get better with the rumored $60BFannie Mae payment….

We should see ~$50B or so of corporate taxes and $30B+ of tax deposits “not withheld” over the next week…so surpluses are on the way…what we are really interested in is the YOY changes. +12% is kind of a baseline…anything under this would be disappointing.

 

Jun 07
0

6/5/2013 Daily US Cash Deficit

By | Daily Deficit

The US Daily Cash Surplus for 6/5/2013 was $5.6B dropping the June 2013 deficit through 5 days to $15B. At this point in the month…we have timing issues galore, so the charts are crazy….I think we are going to have to get used to that this month.

06-05-2013 USDD

Jun 06
0

6/4/2013 Daily US Cash Deficit

By | Daily Deficit

The US Daily Cash Deficit for 6/4/2013 was $6.1B bringing the June 2013 deficit through 4 days to $20B. While this appears to be a $30B improvement over 2012…it’s not really….remember $30B of June outlays were pulled into May, so adjusted for that, we are more or less in line, but with only 2 business days in the books, it’s really too early to identify any trends.

06-04-2013 USDD

Looking ahead, the next week or so should be pretty low key… we’ll probably run a $10-$20B deficit over this time period. Then, around mid month, corporate taxes and taxes not withheld should start flowing in…probably bringing us back into surplus territory. Then…at some point, Fannie Mae is supposed to send a $60B special one time dividend, thanks to their decision to drop GAAP and convert to Enron Accepted Accounting Principles (EAAP)…..which are almost(but not quite) as shady as government accounting principles :).