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America Adds $210 Billion In Gross Debt In August, Rolls $620 Billion In Bills And Notes
As per the August 31 DTS statement, the US ended the month with a new all time record of $13.45 trillion in debt, and increase of $210 billion from the beginning of the month (or $225 billion in public debt, net of intragovernmental holdings). With just 30 days left in fiscal year 2010, the US has added $1.54 trillion in the eleven months ended August 31, a monthly average increase of $140 billion. As a point of reference, the US has received $1.53 trillion in withheld income tax over the same period, confirming that the US continues to issue more than one dollar in debt for every dollar it receives via income tax revenue. This balance will likely be tipped soon courtesy of changes to the tax law, which will adversely impact the withheld tax line, implying even more funding has to come in the form of debt.
Additionally, the US rolled another $513 billion in short-term debt: a number which continues to be persistently high, even as the total amount of short term debt as a percentage of total has declined steadily from 30%+ of total to around 20% as we have written elsewhere. Another $106 billion in Notes was rolled as well, with the intramonth cash balance dropping to a dangerous sub-$5 billion.
For the 11 months ending August 30, the US has paid $180 billion in interest expense in a time of record low interest rates.
At the current rate, we expect that the statutory, and completely irrelevant, debt limit of $14.3 trillion will be breached in the first two months of 2011. At that point total federal debt as a % of US GDP will be roughly 100% in its purest definition, and the inevitable greenlighting by Congress to raise the ceiling then will means that America is fully sliding into a debt-to-GDP ratio of >1.
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I'm seeing a theme here. Can't quite put my finger on it...
We need more pie?
They're not going to stop, are they?
No.
....."For the 11 months ending August 30, the US has paid $180 billion in interest expense in a time of record low interest rates.".....
Yikes, this will keep rates down ...
Suddenly I am having an identity crisis...I was actually proud of being a Capitalist Pig...Gawd I miss the old Pre QE2 days...Maybe I should re-examine the Dinar-Bhat-Loonie Long suggestions....
And Tim Geithner walks into the Oval Office and says..."Who wants a mustache ride?"
Alright I would support a petition for Tiny Tim to grow a porno-stash, the mental image had me rolling!
"a monthly average increase of $140 billion."
Whistle..... Yet, every dollar of debt bought by some chump somewhere.
Uhhh... that would be the FED-on our behalf..
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Nah Tim Geithner will give Larry Summers a dirty raul. That seems his style.
deleted for lack of any relevant content, whatsoever.
Was getting caught up on all the Real Housewives of <trashy> episodes... What I miss?
Haha, every cent "in" is "owed" for past work. Luckily for the oligarchs, half the American population is slightly retarded and can't grasp the reality of the situation at hand!
They've passed the point of no return. They must go hyperbolic as long as no one can stop them. There's no other option.
Things crash soon after they go hyperbolic.
Went hyper about two years ago. We're looking at positive geometric going forward..
America's Debt
or,
The Theater of the Improbable: A Play in Four Acts...
The realm of fantasy with regard to national debt levels first began, quite appropriately, with an actor in the White House. The national debt clock near Times Square was erected as a counterpoint and was at first derided. It was time for Americans to 'Shop till ya drop". That's what the tough do when the going gets tough.
At every step along the yellow brick road of debt, the stakes of fantasy had to be raised to ensure that common sense would not prevail. We heard that America was a "Supertanker!" and that we were in a "Goldilocks economy!"
By the end of the Clinton Administration, when the improbable gave way to the outright whacky, it looked for a minute like we might have to take that clock down. All thanks to new economy miracles like SockPuppet.com and the 'New Paradigm!" of infinite growth through the perpetual motion machine known otherwise as the stock market.
Then the bubble burst. But soon enough a new new paradigm arrived where money was brokered to banks just for the asking. And they lent to people, just for the asking. This was the summit of the unbelievable. We had indeed reached a new age of money-less money. The old Bum's Dream from the days of the Great Depression actually came true: there really was a big rock candy mountain!
Most Americans have yet to fully awaken from their stupor. And like any powerful dream state, the feeling lingers on despite all evidence to the contrary.
http://www.youtube.com/watch?v=MAjnrxcQPes
It's all contained. lulz
Black holes are self-contained as well. Shoveling FRNs into one ain't gonna shrink its size any -- this ain't gonna end well.
why is any of this a surprise?
The debt is compounding geometrically, as it is wont to do. Simple math. Assuming a level growth rate, it's going to double at a predictable interval. Yes, the numbers suddenly seem really big, but the next time the debt doubles, it will go to $27T, then to $54T. It's just the way math works, sheesh.
$1.54T is pretty godawful; wonder how they'll fuck w/ the last FM10 in order to show "reduction" in the deficit
Title: A Letter to the Secretary of the Treasury
Author: Mark Twain [More Titles by Twain]
Riverdale-on-the-Hudson, OCTOBER 15, 1902.
THE HON. THE SECRETARY OF THE TREASURY, WASHINGTON, D. C.:
Sir,--Prices for the customary kinds of winter fuel having reached an altitude which puts them out of the reach of literary persons in straitened circumstances, I desire to place with you the following order:
Forty-five tons best old dry government bonds, suitable for furnace, gold 7 per cents., 1864, preferred.
Twelve tons early greenbacks, range size, suitable for cooking.
Eight barrels seasoned 25 and 50 cent postal currency, vintage of 1866, eligible for kindlings.
Please deliver with all convenient despatch at my house in Riverdale at lowest rates for spot cash, and send bill to
Your obliged servant,
Mark Twain, Who will be very grateful, and will vote right.
-THE END-
Mark Twain's short story: A Letter to the Secretary of the Treasury
When a person cannot deceive himself the chances are against his being able to deceive other people.
- Mark Twain's Autobiograph
Hard to say which is scarier, the 100% debt-to-GDP, the $180 billion paid in interest in just 11 months, or the half-trillion in short-term debt that has to roll. But surely, surely, Wile E. Coyote is about to have his recognition moment. Then, the infinitely long plunge to a cartoonish vanishing point, the tiny puff of dust as he hits the ground, and the falling safe that lands on his head.
All scary, but I think in our present comedy the safe starts falling when we can't make that monthly roll.
After the Great Depression, the last time the US reached these levels of debt, there was one key reason for the subsequent prosperity: deflation and creative destruction had their way and efforts were made to restructure the economy. Real per capita GDP grew nearly 50% from 1933-1940, the strongest 8 year boom in US history. Unemployment rate dropped 9%, also the largest drop ever.
Not a boom when it's a rebound off a Great Depression bottom. Sorry
And obv unemp can only drop 9% when it's vastly greater than that to start.
It's just 210 billion dollars. *Yawn*
It'll pay itself through more debt, nothing to see here, move on.
FX Drill Sergeant:
Ordehhhhher DXY!
Preeeesent DXY!
Left shoulder DXY!
Pooooort DXY!
Right shoulder...er, oh shit.
12 month deficit running +1.6 $ trl... no green shoots here..
alx
didn't the CBO say we were 'only' going to hit $1.3 trillion by the end of the fiscal year? They are already off by $200 Bil?...which means their other projects are off by a min of 15%...and that is short term projection...extrapolate out and 2-5 yr projection coudl be off by more than 70%....yikes.
Good luck with those tax increases and the many more to come.
You can't get much blood from a mutilated corpse.
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