from ZeroHedge:
2024 was the year when the runaway US budget deficit was supposed to gradually normalize, and after two crisis-years, the US was supposed to end its drunken sailor spending ways. And for a while there, it seemed touch and go, with the cumulative US deficit initially overtaking 2023 – forget about the batshit insane 2021 and 2022 when the deficit hit a mindboglilng 18% of GDP…
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… before slowly easing back for a few months, only to sprint ahead of 2023 once more in August…
That’s right, in a year when the monthly budget deficit was meandering along in the merry Chernobyl way, not great, not terrible, someone in the BIden admin had the brilliant idea to spend a metric asston of money to reboot the economy so we don’t get a recession just in time for the elections, and sure enough, government spending went into absolutely epic overdrive, as outlays hit a mindblowing $686 billion, the highest since March 2023, and only a handful of crisis months during the covid crash saw greater government spending in any given month.
Here is another way to show the data: smoothing out for outlier months, by presenting the 6 month moving average: well, it just hit the highest… since covid!
For those wondering how government receipts have performed during this period of exploding spending, here is the answer:
… which is remarkable because while spending is absolutely exploding, revenues have also managed to bounce back, largely thanks to capital gains taxes on the surging stock market.
