Gold, The Formula and Illusion of Recovery

I know much of the media and many individuals have filed the structural deficit under "Who Care's" and moved on. It is, nevertheless, very important to confidence in and fate of the U.S. dollar. Total revenues collected by the US government continue to lag devaluation in the US dollar. In other words, "real" or gold adjusted total revenues continue to collapse at an alarming rate.

Real or Gold Adjusted Federal Total Receipts 12-Month Moving Average (TR12MA) AND Federal Total Receipts 12-Month Moving Average Year-over-Year Change (TW12MA12LN):


While Jim's formula illustrates an anemic bounce, gold's unabated rise during it's uptick is best described as the middle finger gesture to economic recovery illusion.

US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed:


Source: fms.treas.gov