Another Massive Deficit

From Bloomberg:

Treasury Budget

The Treasury's deficit totaled $65.4 billion in March, a sizable sum but well under the year-ago March deficit of $191.6 billion. The improvement is reflected in the fiscal year-to-date deficit, which six months into the fiscal year has turned lower, down 8.2 percent from a year ago but at a still enormous total of $717.0 billion.

Outlays, benefiting from TARP repayments, are showing the most improvement, down a fiscal year-to-date 5.7 percent vs. a year ago. Year-to-date receipts are down 3.6 percent from a year ago vs. a 7.0 percent year-to-date decrease in February.

Despite March's improvement, the outlook of the budget is uncertain given the still weak jobs market and the fact that individual taxes are a central source of the government's income.


Once more we are looking at another massive monthly deficit.

To provide some context of such a large number, consider this:

Each man, woman, and child in the US now owes $2,351 more than they did six months ago.

This does not include unfunded pension and medical liabilities that continue to expand.

And, tax revenues, of which personal taxes contribute the majority, have declined by more than 3.5%.

How long will the bond market allow this to continue?