Deficit Drama: Is America's Budget Blowing Through Manolos?

A Surplus...Briefly!

So there I was thinking April showers bring May flowers...and maybe a balanced budget? For a fleeting moment the U.S. government saw a surplus like finding a vintage Chanel bag at a thrift store. But just like that fabulous find it was gone too soon. Enter May stage left with a deficit that totaled just over $316 billion. Ouch. It’s like when Big promised to change and then… well you know. Some things just never balance out.

Debt and the City: A Trillion Dollar Tab

The year to date total is a staggering $1.36 trillion. It's like trying to pay for an entire shoe collection with only a few twenties in your wallet. The annual tally was 14% higher than a year ago. Interest on the $36.2 trillion debt? Topping $92 billion! Honey that's more than my rent my shoe budget and probably Charlotte's entire art collection combined. And here I was thinking dating in the city was expensive!

Interest: The New Black (Hole)

Interest expenses now exceed everything except Medicare and Social Security. It's the equivalent of your Manolo Blahniks costing more than your apartment. Tax revenue? Actually doing pretty well thank you very much. Receipts rose 15% in May. It’s like finding a twenty in an old purse a delightful surprise but hardly enough to solve the problem. We need more cosmopolitans and fewer financial crises!

Tariff ic News!

Tariffs collections helped offset some of the shortfall with customs duties totaling $22.2 billion in May. Who knew tariffs could be the new 'it' bag? For the year tariff collections have totaled $81.4 billion already surpassing the full year estimate. Even Trump’s tariffs are paying off which is odd because I always thought he was more of a Dolce & Gabbana man.

Yielding to Pressure?

The 10 year Treasury yield is virtually unchanged from a year ago around 4.4%. It's like going to the same old bar and ordering the same old drink comforting but not exactly groundbreaking. And Wall Street titans like Jamie Dimon Larry Fink and Ray Dalio are all sounding the alarm. Could this be the financial equivalent of Big leaving me at the altar...again?

Deficit: The Ultimate Fashion Don't?

With the deficit running more than 6% of gross domestic product things are looking…complicated. It's like wearing last season's Prada – you can still rock it but everyone knows it’s not the latest thing. So the question remains: Can America find a financial stylist to turn this deficit disaster into a fiscal fashion statement? Or are we destined to drown in a sea of red ink one fabulous shoe at a time? I couldn’t help but wonder… is this just a fiscal fad or the beginning of a whole new not so fabulous era?