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The US Deficit Almost Completely Disappeared In December
TBI ^ | 1-11-2013 | Sam Ro

Posted on 01/11/2013 11:55:59 AM PST by blam

The US Deficit Almost Completely Disappeared In December

Sam Ro
January 11, 2013

The U.S. December budget deficit was just $260 million. This is according to the latest Monthly Treasury Statement from the Financial Management Service.

Economists were forecasting a deficit of closer to $1 billion.

The December deficit was also the lowest December number since 2007, reports Bloomberg.

It's worth noting that monthly numbers are noisy, and that seasonal factors tend to be considerable in December.

Regardless, this is an encouraging sign.

Receipts were $269.5 billion while the spending was $269.7 billion. This is important to remember, because budget deficits and surpluses aren't just about spending levels. Indeed, growth plays just as important a role.

As GDP grows, the deficit shrinks. To better understand this, read this and this.

Here's a look at some historical numbers.


(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: debt; deficit; economy; recession

1 posted on 01/11/2013 11:56:05 AM PST by blam
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To: blam

Estimated tax payments for realized capital gains decisions made in advance of new taxes.


2 posted on 01/11/2013 11:58:39 AM PST by Paladin2
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To: blam
More good news:

Why The Newly Reinstated Payroll Taxes Won't Drag Down The Economy

3 posted on 01/11/2013 11:58:50 AM PST by blam
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To: blam

I guess this is the new meme they are trying out: “There is no deficit...and even if there is, it doesn’t matter.”


4 posted on 01/11/2013 12:03:08 PM PST by Mr. Jeeves (CTRL-GALT-DELETE)
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To: blam

Haven’t thought it through yet but I’d bet corporations reacting to anticipated 2013 tax increases had something to with this.


5 posted on 01/11/2013 12:04:06 PM PST by skeeter
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To: blam

Where did it go?


6 posted on 01/11/2013 12:06:25 PM PST by Wisconsinlady (The 2nd amendment is NOT about hunting-but protection from a tyrannical govt)
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To: blam

The Business Insider again. LOL!


7 posted on 01/11/2013 12:08:58 PM PST by FlingWingFlyer (Impeach Obama Now.)
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To: Wisconsinlady

It’s likely all accounting tricks.
(Just like Clinton’s ‘surplus’ didn’t exist.)


8 posted on 01/11/2013 12:10:08 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: blam

I almost won the lottery!


9 posted on 01/11/2013 12:11:08 PM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious!)
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To: Wisconsinlady

I guess spending $200M more than you received is considered good now...


10 posted on 01/11/2013 12:19:51 PM PST by ltc8k6
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To: Paladin2
Estimated tax payments for realized capital gains decisions made in advance of new taxes.

Just like the four years of Clinton's "surpluses" that coincided with the four years that people could pay the taxes on money they rolled over from conventional IRAs to Roth IRAs.

11 posted on 01/11/2013 12:26:45 PM PST by E. Pluribus Unum (TYRANNY: When the people fear the politicians. LIBERTY: When the politicians fear the people.)
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To: Mr. Jeeves

“deficits don’t matter” - Dick Cheney.


12 posted on 01/11/2013 12:29:28 PM PST by Homer1
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To: ltc8k6

Don’t try this at home!


13 posted on 01/11/2013 12:36:14 PM PST by Wisconsinlady (The 2nd amendment is NOT about hunting-but protection from a tyrannical govt)
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To: blam

I don’t understand how the deficit could “disappear” when we have trillions of dollars in debt. I’d be grateful for a logical explanation.


14 posted on 01/11/2013 12:53:04 PM PST by Roses0508
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To: blam
On November 30, 2012 the national debt was $16,369,548,799,604.93.

On December 31, 2012 the national debt was $16,432,730,050,569.12.

It appears this was mostly due to accruing additional interest debt.

Perhaps the reason for this stasis is that Treasury was manipulating payments to keep from exceeding the debt limit. Perhaps we will have a spike once the debt ceiling is increased.

15 posted on 01/11/2013 12:57:01 PM PST by kabar
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To: Wisconsinlady

Yeah, at $260M behind each month, you’d only be $3.12B behind after a year...

Peanuts...


16 posted on 01/11/2013 12:58:59 PM PST by ltc8k6
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To: Roses0508
I don’t understand how the deficit could “disappear” when we have trillions of dollars in debt. I’d be grateful for a logical explanation.

The deficit is the month-to-month difference between intake and spending. The debt is the summation of each month's deficits since the beginning of time.

17 posted on 01/11/2013 1:04:12 PM PST by Fresh Wind (The last remnants of the Old Republic have been swept away.)
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To: blam

We don’t have to raise the debt ceiling after all. WE ARE SAVED.

Just more B.S. accounting tricks.


18 posted on 01/11/2013 1:10:30 PM PST by Revel
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To: ltc8k6

I agree with you, but it’s still 75% reduced from last year.
And to another poster, there is likely BS baked in the numbers, but as to the debt ceiling debate, that BS is certainly good news.


19 posted on 01/11/2013 1:24:04 PM PST by sanjuanbob
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To: Paladin2

Bingo...any ‘expert’ analyst should be able to figure that out.


20 posted on 01/11/2013 1:46:47 PM PST by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: sanjuanbob

If I had to guess I would say that it has to do with our increased oil production.

But I have no idea of what I am talking about. Simply not an expert on the subject.


21 posted on 01/11/2013 2:13:21 PM PST by shineon
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To: blam

The Democrats are staging for the March 1st negotiations.


22 posted on 01/11/2013 2:19:37 PM PST by Kennard
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To: blam
The U.S. December budget deficit was just $260 million.

What budget?

23 posted on 01/11/2013 2:38:26 PM PST by Bushbacker1 (I miss President Bush! (Oathkeeper))
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To: Paladin2

errrrr! Which will be payed in April. Thanks for playin’


24 posted on 01/11/2013 4:06:53 PM PST by newbie 10-21-00
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To: newbie 10-21-00

No, for some peeps the cash has to hit by the end of the year. (maybe jan 15).


25 posted on 01/11/2013 8:16:47 PM PST by Paladin2
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