U.S. Government Spent 51% More Than It Took In Last Month

President Trump is happy that tariff taxes reaped by the government continue to grow.

For August, the U.S. government collected $30 billion in tariffs.

That’s good news if you’re a government bean counter.

However, tariff revenue still only makes up 10% of total government revenue. Back in April, Trump flirted with the idea that tariffs could lower or eliminate income taxes.

Politically, the idea sounds great.

In reality the numbers don’t come close.

The $344 billion the government collected from all forms of taxes last month is just 49% of the $689 billion it spent:

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The U.S. continues to run massive peacetime deficits. (Source: U.S. Treasury)

In other words, the government spent more than half of the money again, as much as it earned last month. Imagine how long spending like that would last if it were your family budget.

This week, the semi-annual budget theatre returns to Washington, D.C. House Speaker Mike Johnson will be making his rounds trying to justify another continuing resolution to keep the government open. All the while, the hard math of demography will grind away at the fabric of U.S. empire.

~ Addison

P.S. Politics are exerting pressure on money market funds, too.

This week on Grey Swan Live! with Adam O’Dell – at 2 p.m. ET, Thursday, September 18, 2025 — we’ll be investigating the $10 trillion pile of cash sitting on the sidelines during the terrifying bull market on Wall Street.

Mr. O’Dell has been warning investors how impending changes to monetary policy are going to force savers out of cash and into the markets… or gold. More details to come. Sign up now to become a member and join us for this week’s call.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

President Trump is happy that tariff taxes reaped by the government continue to grow.

For August, the U.S. government collected $30 billion in tariffs.

That’s good news if you’re a government bean counter.

However, tariff revenue still only makes up 10% of total government revenue. Back in April, Trump flirted with the idea that tariffs could lower or eliminate income taxes.

Politically, the idea sounds great.

In reality the numbers don’t come close.

The $344 billion the government collected from all forms of taxes last month is just 49% of the $689 billion it spent:

Turn Your Images On

The U.S. continues to run massive peacetime deficits. (Source: U.S. Treasury)

In other words, the government spent more than half of the money again, as much as it earned last month. Imagine how long spending like that would last if it were your family budget.

~ Addison

P.S. Politics are exerting pressure on money market funds, too.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

Sunday night, Powell addressed the probe head-on in a video post — a rarity. He accused the White House of using cost overruns in the Fed’s HQ renovation as a pretext for political interference.

The White House denied involvement. But few in Washington believed it.

What followed was bipartisan condemnation of the investigation. Greenspan, Bernanke, and Yellen co-signed a blistering rebuke, warning the U.S. was starting to resemble “emerging markets with weak institutions.”

Estimates now indicate that the average consumer will default on a minimum payment at about a 15% rate – the highest level since a spike during the pandemic lockdown of the economy.

President Trump’s proposal over the weekend to cap credit card interest at 10% for a year won’t arrive in time to help consumers who are already missing minimum payments.

Not to fret, the other 85% of borrowers continue to spend on borrowed time. Total U.S. household debt, including mortgages, auto loans, student loans, and credit cards, reached record highs in late 2025, exceeding $18.5 trillion. This surge was driven partly by rising credit card balances, which neared their own all-time peaks due to inflation and higher interest rates.

There’s an old Wall Street maxim: “Don’t fight the Fed.”

This year, you could add a Trump corollary.

A wise capital allocator doesn’t fight that storm. He doesn’t argue with it. He respects it the way sailors respect the sea: with preparation, with humility, and with a sharp eye for what breaks first.

In 2026, the things that break first are the stories. The narratives. The comfortable assumptions.

Total municipal, state and federal debt service costs soared to nearly $1.5 trillion in the third quarter of 2025. Debt’s easy to accumulate when rates are low. Trouble is, you are obligated to refinance them even after rates go up.

It’s also a key reason why the Trump administration is demanding lower interest rates – even if it means reigniting inflation.