U.S. posts budget surplus

[Wyatt earp]

Here's your receipt:

The Federal Reserve Board on Thursday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $88.9 billion of their estimated 2012 net income to the U.S. Treasury. Under the Board's policy, the residual earnings of each Federal Reserve Bank are distributed to the U.S. Treasury, after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.

The Federal Reserve Banks' 2012 estimated net income of $91.0 billion was derived primarily from $80.5 billion in interest income on securities acquired through open market operations (U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities).

NEXT!

Check Mate:

the home run of the day....

 

[g5000]

Here's your receipt:

The Federal Reserve Board on Thursday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $88.9 billion of their estimated 2012 net income to the U.S. Treasury. Under the Board's policy, the residual earnings of each Federal Reserve Bank are distributed to the U.S. Treasury, after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.

The Federal Reserve Banks' 2012 estimated net income of $91.0 billion was derived primarily from $80.5 billion in interest income on securities acquired through open market operations (U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities).

NEXT!

The Fed has never submitted to any external audit.

But you can bet your bottom dollar that they return as much of the profits from their commercial script Ponzi scheme to the U.S. Treasury as possible....Dutifully, even!

Just giving them profits away!

P.T. Barnum was right.

Please explain how they could be turning over tens of billions of dollars to the Fed if they were not turning a profit.

I stated a simple fact. The Fed is making profits from the agency MBS it has purchased. You cannot refute it, and so go off on a tangent.

I did not claim they will forever make profits from their purchases. As I plainly said, if (and when) the bond bubble bursts, they are fucked.

 

[depotoo]

sure, just as the GAO reported -

Dodaro also cited material weaknesses involving an estimated $107.7 billion in improper payments, information security across government, tax collection activities, and loans receivable and loan guarantee liabilities.

Significant Financial Management and Fiscal Challenges Reflected in U.S. Government's 2012 Financial Report

 

[freedombecki]

U.S. posts $117 billion budget surplus in June - Yahoo! Finance,

July 11 (Reuters) - The U.S. government posted abudget surplus in June, the latest sign of rapidly improvingpublic finances that could reduce the urgency in Congress tostrike a deal to raise the nation's limit on borrowing.

Rising tax revenues, public spending cuts and big paymentsto the Treasury from state-backed mortgage firms helped thegovernment take in $117 billion more last month than it paidout, the U.S. Treasury said on Thursday.

Will the teabaggers now STFU?

Gee whiz, Doctor Doh! Never mind the $17,000,000,000,000.00 (Seventeen Trillion Dollars) Elephant in the Living room!

The Seventeen Trillion Dollar Elephant in the Living room
(Don't look, now, anyone!!!)

U S National Debt Clock​

 

[Oddball]

Here's your receipt:



NEXT!

The Fed has never submitted to any external audit.

But you can bet your bottom dollar that they return as much of the profits from their commercial script Ponzi scheme to the U.S. Treasury as possible....Dutifully, even!

Just giving them profits away!

P.T. Barnum was right.

Please explain how they could be turning over tens of billions of dollars to the Fed if they were not turning a profit.

Oh, I dunno....Print it up to pump up the price of the MBS, that they've been buying up to the tune of scores of billions at a a time....Then turn around claiming what a huge profit you've made!

Nice work, if you can get it.

I stated a simple fact. The Fed is making profits from the agency MBS it has purchased. You cannot refute it, and so go off on a tangent.

I did not claim they will forever make profits from their purchases. As I plainly said, if (and when) the bond bubble bursts, they are fucked.

Well, the Fed is making a fake profit from a market that they deliberately inflated, anyways....The "profits" being returned to the Treasury are, Oh BTW, inflated and devalued.

Now, were there anyone with a shred of responsibility in the Treasury Department, that "money" (i.e. bookkeeping entries) would be immediately take out of circulation to head of any inflationary pressures....But there's not.

These "profits" and the fake "surplus" are going to be touted as a great success of both QE and Dear Leader, and the funds will be pissed away post haste....Book that one, Dan-o.

 

[Quantum Windbag]

U.S. posts $117 billion budget surplus in June - Yahoo! Finance,

July 11 (Reuters) - The U.S. government posted abudget surplus in June, the latest sign of rapidly improvingpublic finances that could reduce the urgency in Congress tostrike a deal to raise the nation's limit on borrowing.

Rising tax revenues, public spending cuts and big paymentsto the Treasury from state-backed mortgage firms helped thegovernment take in $117 billion more last month than it paidout, the U.S. Treasury said on Thursday.

Will the teabaggers now STFU?

Let me get this straight, we post a surplus because the Te Party demanded that the government not spend unlimited amounts of money, and you think the Tea Parts should admit they are wrong.

 

[boedicca]

I understand rate of return. Earning an eensy beensy profit compared to the massive debt undertaken is a fool's game.

When interest rates spike, that eensy beensy profit will be wiped out in a nanosecond.

This is the case for every investment house/bank right now, not just the Fed. Astronomical carry trades and derivative speculation that will blow up in their faces and bring down the entire planet in a flash.

Which is why we better start praying that will never happen. We are WAAAAAAAAAY past Too Big To Fail and deep in Too Big To Save territory.

So piling on more debt to buy even more MBS is the solution?

As if.

 

[Avatar4321]

one month? Let's for the sake of argument and assume the math is correct and we have a budget surplus for june.

That somehow makes up for decades of deficits?

Do you expect we'd be able to make up for decades of deficits in one month?

No. That's my point. You seem to think one month of surplus somehow means we dont have a problem anymore. It's stupid.

 

[LoneLaugher]

There sure are a lot of experts here.

 

[prepster]

U.S. posts $117 billion budget surplus in June - Yahoo! Finance,

July 11 (Reuters) - The U.S. government posted abudget surplus in June, the latest sign of rapidly improvingpublic finances that could reduce the urgency in Congress tostrike a deal to raise the nation's limit on borrowing.

Rising tax revenues, public spending cuts and big paymentsto the Treasury from state-backed mortgage firms helped thegovernment take in $117 billion more last month than it paidout, the U.S. Treasury said on Thursday.

Will the teabaggers now STFU?

Probably not, considering that a budget surplus also means government spending is likely down, and, due to political inaction, overall tax burdens are up, which contributes to the stagnation in unemployment, and anemic real GDP growth in Q4 2012 and Q1 2013. Of course, many Tea Partiers will not connect the slowdown in real GDP growth to cuts in overall government spending. At least they will be half correct in blaming the government for increases in overall tax burdens. Maybe if we can stop having a debate over fiscal and monetary policy based on concerns of economic confidence, and instead on concrete macroeconomic measures, we could shorten the time it takes to close the output gap, and substantively deal with the medium to long-term deficit and debt issue.

 

[CrusaderFrank]

$60b or half of the "surplus" is a one time event from F/F...its not going to distribute that much next month right?

Also the Fed is using Global Crossing accounting and its going to end just as badly.

Sent from my DROID RAZR using Tapatalk 2

 

[Trajan]

See the top of the page.

that rancid smell you just noticed----------you stepped in shit on this one oooopie.

better run away before you sink in up to your eyeballs.

Um...There hasn't been a budget in over three years....Thanks for stomping on that flaming bag of poo, nitwit.

Um...it seems you don't know how government works.

There have been continuing resolutions for the past three years. Otherwise the government would have shut down three years ago.

So there is a budget. The exact same budget we have had for three years. Spending has been occurring, and revenues have been received. For the first time in a long time, more revenues have come in than expenditures paid out.

Here's the bottom line you missed: We are therefore not running up more debt.

No matter how you spin it with idiotic statements demonstrating ignorance about government budgets, that's good news.

It is NOT a Budget, it is appropriations legislation and a duck and cover maneuver, plain and simple.


You do realize that the gov. ran a deficit of $489 billion in the first seven months of fiscal year 2013?


So, in June the gov. took in more than it paid out, in June…sooo, if July is par or we spend more than we take in….?

Theres being fair and acknowledging good news and then theirs pie in the sky pugnacity in the face of facts, like; we have a roll over on debt and interest payments due this summer on monies we have borrowed/sold bonds on during the last years of CR’s while we ran up deficits via CR's etc..

 

[Trajan]

I understand rate of return. Earning an eensy beensy profit compared to the massive debt undertaken is a fool's game.

When interest rates spike, that eensy beensy profit will be wiped out in a nanosecond.

This is the case for every investment house/bank right now, not just the Fed. Astronomical carry trades and derivative speculation that will blow up in their faces and bring down the entire planet in a flash.

Which is why we better start praying that will never happen. We are WAAAAAAAAAY past Too Big To Fail and deep in Too Big To Save territory.

So piling on more debt to buy even more MBS is the solution?

As if.

apprently so......

some weeks ago bernbank said he may start curtailing QE purchases, markets didn't like that, then what, 3 days ago, he says nope....so, which is it, are we on the mend or not?

 

[OohPooPahDoo]

O-Sack-O-Poo is always neglecting the aspect that the Feds are collecting a bunch of fees and taxes for ObamaCare...while deferring a great deal of expense. When that spending tidal wave hits, it ain't gonna be pretty.

Oh my fucking god shut the fuck about ObamaCare. Just shut up. You're an idiot.