US Ends June With $13.2 Trillion In Debt, Adds $210 Billion In Total Debt, On Track To Breach Debt Ceiling In Under Six Months

Tyler Durden's picture

In case one is wondering why the House Democrats attached a document to the emergency war supplemental bill that "deemed as passed" a non-existent $1.12 trillion budget, which basically allows the ruling party to start spending money for Fiscal Year 2011 without the constraint of an actual budget, here is the answer: on June 30, the US closed the books with just over $13.2 trillion in total debt, an increase of $210 billion in one month, or $2.5 trillion annualized. There is just $1.1 trillion left on the ceiling. As we have long been warning, at the current run rate, the ceiling will be breached in under six months, or just around November 2. More disconcerting is that the monthly debt roll continues to be in the "ridiculous amount" category, hitting a total of $660 billion, of which $583 billion was rolling off Bills (we are not sure what the $19 billion im "GSE investment" was for, but we are fairly sure the words Ponzi and Perpetuation are part of it). Of course, if America knew that according to the Obama non-existent budget the debt ceiling would be breached in 2010, it may not have a favorable reception among those few who are still willing to vote for either party of the bipartite farce that passes for a government.

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homersimpson's picture

Gee.. with all these taxpayer-funded ramp ups, one wonders if they can even make it to two months before hitting the debt ceiling..

Ragnarok's picture

I'm waiting for the Muni and Pension bailout, that's when the real fireworks start.

 

As for the roll rate, who's holding what and what is the average maturity?

Gloomy's picture

From the NyTimes:

Britain Is Puzzled by Its Inflation Problem in a Downturn

LONDON — Bank of England policy makers are puzzled by persistently rising prices in Britain — even during the deepest recession since World War II.
B9K9's picture

@Gloomy - You appear new around here, so perhaps I can provide you with some basic operating parameters.

First & foremost, the power-elite are far from surprised. In fact, some suggest/believe that the events we are currently experiencing have been in the planning stages for generations and are now being finally executed.

Being "puzzled" is just part of the 3-D's which the MSM faithfully broadcasts to the (soon to be sheared) sheep on behalf of their pay masters: deny (knowledge/awareness), delay & divert (attention). These are the basic tools used by the PTB to sow confusion & discord.

CogDis has written extensively about these & other various techniques being employed to enable the final round(s) of looting before the whole shit-pile comes crashing down upon our collective heads.

Apostate's picture

No, the power elite are truly puzzled because they're mis-educated. Much like the Romanovs were deluded by the mystic Rasputin before the Bolshevik revolution, the powers that be universally believe in monetarism.

They really have no idea that an increase in the supply of money inevitably leads to inflation. The concept is foreign to them. They believe that money is a magical thing immune to the laws of supply and demand.

They really are that deluded. They have brilliant criminal instincts, but limited intellectual understanding. 

The Alarmist's picture

They are surprised because all money belongs to them, and they cannot fathom that the larger economy (dare I say "Invisible Hand") would dare to adjust prices accordingly to attribute a new exchange value to each and every fiat unit they pump out into the real world.

 

trav7777's picture

Deeper than that, the entire profession of economics is ONLY relevant or even vaguely valid within a climate of GROWTH.

Japan's experience with rising prices in some things and credit deflation elsewhere, the so-called liquidity trap, was unforeseen and not even ackowledged as possible.

If we have left aggregate growth behind, the economists will fly us into a mountainside because they do not realize that the magnetic poles have flipped.  We can fly into the setting sun and they will tell us that we are going east.

There is NO study in economics for aggregate contraction or the impossibility of growth.  None.  Nobody even acknowledges it.  Therefore, do not expect ANY of the experts to ever get why the world seems to be upside down.

B9K9's picture

Travis, I'm gonna have to disagree with you here. There are only a few absolutes in life; one of them is that the power-elite enjoy a disproportionate IQ advantage over most of their fellow man. (Present company as represented by ZH space-monkeys excepted.)

There is NO WAY they do not understand exactly what we are discussing. Economics in an environment of 'no growth'? I would posit that we can merely reverse engineer current policy prescriptions to determine that this concept is fully incorporated into their thinking as justification for their illegal actions.

There is simply no way hundreds of years of settled jurisprudence regarding contractual rights, much less our entire Constitutional construct, would be so glibly abandoned if not for what they clearly recognize as our primary threat.

If we don't come up with some "growth miracle 409", this whole shebang is gonna collapse. You know it, I know it, Mako knows it, and a whole raft of others know it. Bernanke sure as shit knows it. About the only imbeciles who don't know it are our Congressional 'representatives'. They're scared sheep and have outsourced the entire problem to the wizards of Wall St. thinking it's all going to be OK.

Sure ... Which is why it is wise to start inching towards the proverbial door.

DiverCity's picture

There is simply no way hundreds of years of settled jurisprudence regarding contractual rights, much less our entire Constitutional construct, would be so glibly abandoned if not for what they clearly recognize as our primary threat.

 

That's exactly what's been bothering me!  Of course, the constitution has been watered down over the last 150 years, especially since the New Deal, but we're seeing its abandonement at warp speed ever since TARP.  Contract rights are ignored on a grand scale.  Sheesh.  But when you say start inching toward the door, what do you suggest?

WaterWings's picture

I see huge swaths of Amerika living week-by-week on gov't assistance. They will not beat the calorie deficit game once that is shut off. They will become confused; violent. You do not want to be around when that happens. The most desirable locales are the ones with the smallest % of individuals that rely wholly on the gov't for their existence.

Ripped Chunk's picture

"we're seeing its abandonment at warp speed ever since TARP"

Look back a bit further brother.  They were happy with a slow gradual chipping away for decades then a sudden acceleration beginning with 911. They already had the financial de-regulation in place for close to 20 years at that point. The past 9 years is called finishing what is left of the pie.

 

Ripped Chunk's picture

Right, a bunch of inbred, caviar eating, pale white marshmallows have IQ's superior to the rest of us.

Our Congressional "representatives" are the filthy whores that make their bidding possible.

 

 

 

 

Muir's picture

"No, the power elite are truly puzzled because they're mis-educated. Much like the Romanovs were deluded by the mystic Rasputin before the Bolshevik revolution, the powers that be universally believe in monetarism...

They really have no idea that an increase in the supply of money inevitably leads to inflation. The concept is foreign to them. They believe that money is a magical thing immune to the laws of supply and demand.

They really are that deluded. They have brilliant criminal instincts, but limited intellectual understanding. "

 

Yes!

Yes. (if money created > money destroyed) And please, don't let me hear about v.

Yes.

Apostate's picture

If people are going to junk my comments, I'd appreciate it if they'd at least rumble with me in a reply. Drive-bys are so dull. 

Muir's picture

Wasn't me.

Guess they want the gov to cut spending, banks held to the coals, deflation and yet, gold to go to $5000

dnarby's picture

Wow, 4 junks!

...Must be some power elite flunkies trolling here...

merehuman's picture

i did not junk you, but i expect most think like i do , that it was planned . Much like 911, most would rather not admit that evil folk run the country.

OTOH a lot of the bad guys made an awful lot of money while the country goes broke. All just coincidence of course. GS having their folk in key spots across the globe is mere coincidence also. There are a lot of such fortouitous accidents, like the whistle blower in England who got run over.

The unusual nature of most countries having the same problems we do at the same time, again is coincidence. There is more like that.

So you appear to be naive or a shill for TPTB. Now i will junk you as is appropiate.    Dont take it hard, we still love you.

WaterWings's picture

O.T.O.? Yeah, these ***ks do a lot of weird stuff in their freetime.

http://en.wikipedia.org/wiki/Ordo_Templi_Orientis

They enjoy displaying their beliefs and rituals for all to see. Pattern after pattern. A master agenda. Control the minds of the young...

http://vigilantcitizen.com/?p=3925

Gordon_Gekko's picture

Well, all I can say is that "Bank of England Policy Makers" are complete and total morons.

RockyRacoon's picture

Oh, come now, Gordon.  Surely they are worthy of something? 

Landfill?  Compost?  Door stops?  Boat anchors?  Speed bumps?

Turd Ferguson's picture

All info above = Sell gold 

 

trav7777's picture

I'm not following how an impeding sovereign debt crisis = sell gold

Muir's picture

Turd,

I thinks you have it backwards, but cheeky addressed this earlier today in a reply to another post you wrote better than I ever could.

Turd Ferguson's picture

Sorry, Muir, on this one Cheeky is all wet. The bullion banks have purposely jammed gold down. It has nothing to do with in/deflation. Market manipulation, pure and simple.

Gordon_Gekko's picture

Actually, all info above = sell everything and buy ONLY Gold.

trav7777's picture

I'm not following how an impeding sovereign debt crisis = sell gold

Mr Lennon Hendrix's picture

I think he is using "market logic".

Turd Ferguson's picture

Thanks for the backup, Jimi. You'd think everyone posting above would have known I was fucking joking, Do I have to put <sarcasm> on fucking everything? 

TwoShortPlanks's picture

A Fed Infiltrator would say just that...Kartik Athreya, is that you under that rediculous hat???

REALITY CHECK

All info above = buy gold and buy organic [germinating] seeds, commence turning your soil in your back yard and start pissing on it....and start reading-up on farming...FAST!!!

I bought about 1000 organic seeds yesterday...THE HEDGE OF LAST RESORT

My investment...20 bucks!!!

perchprism's picture

 

Dude, you don't mean "organic", you mean "non-hybrid".

TwoShortPlanks's picture

Sorry for not being specific. I meant both non-hybrid (you are correct), and naturally grown and seeded (organic nutrient only).

The deeper meaning of what I'm trying to say (didn't really say) is that the closer to the original wild strains a seed is, the more it would essentially be worth (assuming a post peak oil, post sovereign collapse environment). In this way, seeds themeselves have the potential of becoming a valuable asset/hedge and they can also be graded, simple comodity.

When I said "THE HEDGE OF LAST RESORT", I am of course giving reference to an environment where nothing but food, water and shelter matter...Gold, would in fact be worthless at that time, and the slogan 'worth it's weight in gold' could be replaced by 'worth it's weight in seed'.

Seeds in themselves are small, light and easily transportable, AND, can be leveraged-up in the form of fruit etc with a bit of work. Seeds, and the ability to extract and dry them for storage, would be the post-apocolyptic version of central banking.

merehuman's picture

Turd, wipe that smile of your crack. Junked you for sheer insanity

Turd Ferguson's picture

You fuckers clearly haven't read anything else I've written lately.

I was being facetious.

Turd Ferguson's picture

For clarity, <sarcasm> on.

Fuck.

optimator's picture

Looks like even more extra bucks will be needed -- remember those carrier groups in the Med.  Add that to Bibi's visit to our Pres. and what do we have?

http://www.atimes.com/atimes/Middle_East/LG03Ak01.html

Turd Ferguson's picture

Opti, what do you think of these coincidences:

1) Swissy and gold have rallied significantly. The traditional safe havens for Jewish money.

2) US moves 3 carrier strike groups to Persian Gulf.

3) Netanyahu visit.

 

My guess is that Bibi has informed Obama that Israel is going to act alone...and soon.

Big Israeli $ have excellent connections. They've gotten the word and they are getting out while they can...relocating themselves and their money.

The US naval presence is to protect the Strait of Hormuz, Saudi Arabia, Kuwait and the UAE. Defensive support only to try to contain Iranian retaliation.

Shameful's picture

They do so and they might get a lot of hate.  Now your average American is dumb, but hit him with $4 gallon gas right now and he will be upset and looking for someone to blame.  Might be they blame Iran, but unless they stage a pretense some hate might actually fall on Israel.

Turd Ferguson's picture

Also, read this:

http://www.telegraph.co.uk/news/worldnews/middleeast/israel/7875861/Bara...

The last visit, when Obama got all pissed off and left Netanyahu hanging, is when Bibi informed O that Israel had decided to act alone, probably before the end of summer, with or without new sanctions. 

This visit is for the sake of public appearances and to make contingency plans?

Shameful's picture

rotflol "willing to take risks for peace"!  Hahaha, nothing like a little pre-emptive vengeance!  But they are telling the truth the bond is unbreakable.  Israel could nuke Europe on a whim and we would support them.

I'm not saying it won't happen.  I'm just saying that containing the hate might be a little rough.  Better let the MSM know to do damage control.

THE DORK OF CORK's picture

Check this out - the Palestinian Propaganda machine is training 9 year old boys to speak out against oppression - is there nothing that these terrorists hold sacred.

I bet he is really complaining about the fact that he gets no toys from Santa because he is a Muslim.

 

www.youtube.com/watch?v=4vprhpeLI5Y

merehuman's picture

9  year old boys have no right to be oppressed. Funny how all those terrorists end up being actual real people who are oppressed, lack education and act out of ignorance due to poor education and starvation.

Lord Welligton's picture

“I bet he is really complaining about the fact that he gets no toys from Santa because he is a Muslim.”

 As they say in Ireland.

 “You are an utter gobshite”

THE DORK OF CORK's picture

 Lord Wellington -  for a Anglo-Irish type your ironic screening powers leave much to be desired.

perhaps you need to get down with the peasants again - familiarity with us may breed contempt but it is a necessary chore if you want to govern wisely.

Lord Welligton's picture

"willing to take risks for peace"! 

Translation.

Willing to make War for Peace.

 

Sudden Debt's picture

"willing to take risks for peace"! 

=

Making billions of dollars profit on building the biggest and meanest weapons one can imagine.

optimator's picture

Senator Lieberman is again visiting Israel, he's their leader in our Senate.

"Senator Lieberman used some very harsh language at the Wednesday press conference to describe the Iranian nuclear program, saying the US must do everything it can to stop Iran from becoming a nuclear power. The US will address the Iranian threat "through diplomatic efforts and economic sanctions if we can, but through military action if we must," said Lieberman."

walküre's picture

You think they need to stage a visit to discuss all that?

Oil & wars have been the center piece of the last 100 years of global economic activity.

I don't think this is partial to "Jewish" money. Swiss Francs are mainly safe havens for Europeans and Arabs, Gold is a universal safe haven. Everyone and their uncle is understanding that Gold stores value relative to all other assets.

When you suggest that "Big Israeli $ [...] are relocating themselves and their money" do you mean to say they are buying stocks in American exchanges? That's nuts.

War is not going to lift this market.