Monday, April 27, 2009

US Treasury 2nd Quarter Borrowing to hit $361 Billion…

Math, it’s not fun when it works against you, and the Fed, the central banks, and your government are all working against you. The second fiscal quarter is the one where the revenues are supposed to be the strongest and borrowing the least. However, not this year:

US Treasury April-June borrowing to hit $361 bln

WASHINGTON, April 27 (Reuters) - The U.S. Treasury Department said on Monday it expects to borrow $361 billion of marketable debt in the April-June quarter, up $196 billion from earlier estimates, as government spending soars in the deepest and longest recession in decades.

The amount is a record for the quarter, in which borrowing usually diminishes because most Americans' annual income taxes are filed by April 15. Borrowing needs include $200 billion to support Federal Reserve liquidity programs aimed at reviving lending after the housing market crash and surge in credit defaults.

The previous record borrowing for the April-June quarter is $60 billion in 2003. The Treasury cited weak revenues and greater spending to support economic recovery programs as among reasons for greater borrowing needs.

The Treasury said it expects to borrow $515 billion of marketable debt in the July-September quarter. In the January quarter it borrowed $481 billion, slightly less than earlier estimates.

The Treasury on Wednesday announces its quarterly debt refunding needs. (Reporting by Mark Felsenthal; Editing by Neil Stempleman)

The previous record for the quarter is $60 billion? That almost sounds quaint! Well, I think I know how to do simple math and that means that this year we are SMASHING THE ALL TIME DEBT RECORD BY A FACTOR OF 6! Six times more than ever before?!

You can't say you were never warned: U.S. Budget Disaster Strikes...

Hey, sorry to those who believe the crisis is over, but I think I see that train a coming… and we’re all stuck in Folsom Prison!

Johnny Cash - Folsom Prison Blues