US Budget Deficit Soars By 50% In December

1.12.24 - US Budget Deficit Soars By 50% In December

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US Budget Deficit Soars By 50% In December As Fiscal Collapse Under Biden Accelerates -ZeroHedge

Remember when we showed that the "stealth" secret sauce behind Bidenomics was nothing more than a massive, multi-trillion debt-fueled spending spree, which led to the biggest peacetime, non-crisis budget deficit in US history, with the total deficit for fiscal 2023 ending just over $2 trillion, or double the prior year, something which BofA's Michael Hartnett called the "era of fiscal excess"?

Well, we have news for you: if 2023 was bad, 2024 - an election year of course - is shaping up to be far worse.

Moments ago the US Treasury reported the budget deficit picture for December and it will come as no surprise to anyone that the US has continued to spend like a drunken sailor, or rather, even more. As shown in the chart below, in the month of December, the US collected $429 billion through various taxes, while total outlays hit $559 billion...

... resulting in a December deficit of $129.4 billion.

This may not sound like a lot, but December is actually one of those months when the US deficit is relatively tame, or used to be.

As shown in the next chart, traditionally the December deficit was barely in the $10-20BN range... until 2020 when it exploded to an all time high of $140BN. And while it dropped sharply in 2021, it rebounded dramatically in 2022, and rose to just shy of the December crisis high last month!

Here is some more context: tax receipts of $429.3BN in December were down 5.6% from the $454.9BN in December 2022 and down a whopping 11.8% from December 2021. On an LTM basis, US total tax receipts were $4.521TN, or down 7.2% YoY. This is now the 9th consecutive YoY decline in LTM tax receipts, something that historically has only taken place when the US was in a recession. As an aside, the "smart economists" were certain that the collapse in tax receipts would reverse after November when the postponed California taxes would be collected. Well, November has come and gone and the big picture is just as ugly. 

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