From Zerohedge, US Posts Biggest March Budget Deficit In History:
Following the all time record high February budget deficit of $232 billion, the US March budget deficit number is in, and in addition to being bigger than expected, coming at $198.2 billion on expectations of “only” $196 billion, the government outlay in the past month also is the largest March deficit on record. This brings the total deficit in fiscal 2012 to $779 billion, which is to be expected for a country gripped in total political chaos and which is unable to either raise revenues or lower spending. What is more disturbing is that over the same period (Oct 1 2011 – March 31, 2012), the US government issued $792 billion in debt, a trend that will continue. What is most disturbing is that the comparable tax revenues net of refunds, “matching” this increase in deficit and spending, are only $693 billion, in other words the US government is funding well more than half of its cash needs with debt rather than with tax revenue.
My math tells me that the US is borrowing 53.3 cents on every dollar in expenditures over the last six months. No government or any other entity (unless you can change water into wine) can continue to do this, not even the mighty United States, without eventually facing a day of reckoning.
This blog was cross posted from the Righteous Investor.