Government Celebrates Austerity With Fourth Largest Spending Month Ever

link:    Government Celebrates Austerity With Fourth Largest Spending Month Ever
When in April the US government reported a surplus of $112.9 billion (thanks to tax collections, Fed and GSE remittances) – the largest surplus since April 2008, many wondered if DC’s profligate ways were over, and if maybe the so-called US austerity was staring to kick in. It wasn’t. Because as the just released May data showed, not only did the US go right back to its deficit ways, posting a negative surplus of $138.7 billion, the largest May deficit since 2009, but the amount the US government spent, a total of $335.9 billion, was the largest May outlay in history, and only the 4th greatest spending month ever. Of course, when the most misunderstood concept in Europe – by the 17 or so “sovereign” nations that make up its disunion – for the past three years has been fauxterity, it is not surprising that US politicians are having quite a bit of trouble grasping that spending less means actually… spending less. But at least Bernanke will have something to monetize in a system in which liquid, “high-quality” collateral is becoming increasingly scarcer.