Federal deficit in April nearly three times larger than expected

It appears that any rumors of increasing tax revenue were unfounded.

The Treasury Department says the April deficit soared to $82.7 billion, the largest imbalance for that month on record. That was significantly higher than last year's April deficit of $20 billion and was above the $30 billion deficit private economists had been forecasting.
The government normally runs surpluses in April as millions of taxpayers file their income tax returns. However, income tax payments were down this April, reflecting the impact of a severe recession which has pushed millions of people out of work.

We are nearly a year into this so-called recovery, and yet the deficit situation seems to be getting worse. This is an unstable situation.
The April deficit marked the 19th straight monthly shortfall.

Revenue and other income fell 7.9 percent to $245.3 billion in April from $266.2 billion the same month last year, the Treasury said.
Corporate tax receipts totaled $77.1 billion for the year to date, an increase of 8.9 percent. Individual income tax collections were down 11.6 percent so far this fiscal year to $500.8 billion.

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does that include Fannie/Freddie?

the deficit? This is weird, well, I guess the tax revenues increases were from payrolls in the unemployment report vs. tax returns.

That said, it is everything? i.e. backdoor bail outs?

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I doubt it

I believe that Fannie and Freddie are off-book.

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Just Keep Printing More

Till BRIC and the IMF push a new world currency down our throats and then we will lose that ability.

Reality will come crashing down as the dollar will no longer be a safe haven and OUR borrow and spend policies will come back to haunt us.

This pathway makes me wonder if another world war is inevitable.

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Gold as safe haven

Zero Hedge has some gold bug videos on their site. I don't know what to make of this continual "paper money" deal on ETFs, at least GLD, for I thought they backed their ETF with 1:1 gold holdings, i.e. physical gold. Seems everyone is looking at this perpetual debt machine and money printing press going to collapse reserve currencies and yes, of course we get this new "reserve" currency as a "basket" of currencies, which well, it's really bad the advantages the U.S. has being a reserve currency.

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FIAT Currency End Game

One of the things I believe is going on is that the Mises people are in part being vindicated here as the paper only currency experiment is collapsing.

Gold restricted inflation across the whole economy which is not the case with the fiat currency.

At some point the US dollar will have to be devalued by some huge amount all at once and soon after that it will be replaced as the reserve currency.

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Replaced?

Perhaps by the euro? The Yen? The drachma?

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Frank T.

Basket of curriences

That was an agenda being promoted about a year ago. To remove the U.S. dollar as a reserve currency and replace it with a basket of them. China was pushing for this.

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More Recent Than That

The IMF, BRIC and OPEC are all on the same page on this as are some European nations. A mix of currencies and commodities.

Its just a matter of time before it happens and then reality will hit the US economy - meaning the same rules that apply elsewhere will then apply here.

IMF Proposes New Reserve Currency

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