Thu, 11/12/2020 – 14:44
Specifically according to the Treasury, in August, government outlays were $521.8 billion, up $24 billion from the $497.8 billion spent in September, and a whopping 37% more than the $380 billion the US spent last October…
… while receipts shrank from the $373.2 billion received in September to $237.7 billion, and down 3.2% from the $245.5 billion received last October (the question of why anyone still pays taxes in a time of helicopter money, when the Fed simply purchases whatever debt the Treasury issues, remains).
The chart below shows the October and YTD 2020 breakdown between various receipts and outlays. It reveals that the bulk of the total $238BN in receipts came from Individual Income Taxes ($109BN) and from Social Security and Retirement payments ($96BN), while the biggest spending categories were Medicare ($96BN), Social Security ($93BN), National Defense ($80BN), Income Security ($73BN) and Health ($63BN). Net interest on public debt was “only” $32 billion, but this number can only grow.
Finally putting the October number in context, the October deficit of $284.1 billion was not only more than double the deficit recorded in any year in the past decade, but was the highest October deficit on record, in what is an ominous confirmation that the US debt, already over $27.1 trillion will rise above $30 trillion within the next 12 or so months.
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Author: Tyler Durden