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jesusfreakinco (31.17)

Hate to say it... Alstry is right

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November 06, 2009 – Comments (7) | RELATED TICKERS: FED , CRO , OKS

Take a look at the latest numbers from the CBO:

CBO estimates that the government recorded a deficit of 175 billion in October, about $19 billion more than the shortfall recorded in the same month last year.  Revenues were $29 billion, or 18 percent, lower than they were last October; most of that decline stemmed from reductions in withheld individual income and payroll taxes resulting from continued economic weakness and the revenue-reducing provisions of ARRA. Outlays were $10 billion lower than they were last October, primarily because of a reduction in net spending for the TARP—from $33 billion in October 2008 (when the program began) to $0.2 billion this October. Excluding outlays for the TARP and adjusting for calendar-related timing shifts in spending, outlays rose by about 6 percent compared with outlays in October 2008, CBO estimates.

http://www.cbo.gov/ftpdocs/107xx/doc10708/11-9-09MBR.pdf

JFC - Official numbers show FYE 9/30/09 deficit being 9.9% of GDP and receips down 16.6% YOY

Preliminary October numbers show receipts down 29% YOY and the deficit up 19% YOY.

Folks... things are accelerating to the downside.  The Fed better rev up that printing press because its only like to get uglier out there.

Oh yeah.. and gold exploded to the upside this week, India made a major purchase, Barrick is trying to close their hedge book faster than anticipated.  Got gold?

 

 

7 Comments – Post Your Own

#1) On November 06, 2009 at 6:17 PM, bullnada (77.10) wrote:

Jesus,

 I dont know why people hate Al. He has helped me along the way. I thought I was crazy thinking things are so bad. when the sky is falling the sky is falling.

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#2) On November 06, 2009 at 6:33 PM, jesusfreakinco (31.17) wrote:

Bull,

I know.  I love Al too.  I just like poking fun at him.  He is providing a valuable service to CAPS even if the whiners don't like him.

The sky is falling indeed.  Just got a nice chunk out of the house today (refi) that I'll be looking to deploy next week ;)

JFC

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#3) On November 06, 2009 at 8:17 PM, russiangambit (99.03) wrote:

Well, I saw a funny comment today - suggesting that Treasury abandons all forms of federal taxes entirely, and simply has FED to print the money to cover all expenses. Why do half one way and half another way. Very funny, unfortunately very true as well.

This is exactly how USSR system operated, we didn't have any explicit taxes and had fixed salaries, so government did whatever it needed to cover the expenses when they increased . Which meant borrowing abroad and printing money.

At least, in the US there is no price controls and so increase in money supply gets reflected in higher prices. In USSR the prices were fixed and so everything got way out of whack eventually because there was no way to naturally balance the economy, we had shortages of everything.

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#4) On November 06, 2009 at 8:32 PM, zloj (98.66) wrote:

Actually, they taxed the hell out of companies (up to 100% profit, in fact) but there was no income tax on the individual level. Made perfect sense too because everyone would own the same 40-60 rubles, so why bother with extra paperwork. Then again there was the excise tax on vodka, which played roughly the same role as the printing press does in the U$A.

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#5) On November 06, 2009 at 8:33 PM, zloj (98.66) wrote:

owe, not own (slipped through the spell checker unnoticed :)

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#6) On November 06, 2009 at 8:59 PM, APJ4RealHoldings (87.07) wrote:

"The Fed better rev up that printing press because its only like to get uglier out there."

Um, could you please explain how doing this will help you, me, or Americans in general?

Have the 'Feds' not been 'revving up' the printing press the last 10 years?

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#7) On November 07, 2009 at 4:23 PM, jesusfreakinco (31.17) wrote:

APJ4RealHoldings

That was tongue in cheek.  I hope you knew that.

russiangambit

Always appreciate your insight. Isn't our media a bit like propaganda filled USSR media from the cold war days?

JFC

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