US Debt Soars To $16,159,487,013,300.35, +$93 Billion; Or How To Kick Off Fiscal 2013 With A Bang

Tyler Durden's picture

September 30 was the last day of Fiscal 2012 for the US which explains why despite the barrage of debt issuance in the past month, the year closed with total debt of just $16.066 trillion, a modest increase of just $50 billion in the month. Luckily, moments ago we got the first DTS of the new fiscal year, which eliminated any residual confusion we had. As of the first day of FY 2013, total US debt soared by $93 billion overnight, and is now a record $16,159,487,013,300.35. One can see why Tim Geithner wants to push all the debt under the coach for as long as possible (and the scariest thing is that the actual increase in Treasury cash was a mere $11 billion). But wait, there's more. As a reminder, final Q2 US GDP was recently revised lower by $20 billion, which if we extrapolate into Q3 (leading to a nominal GDP print of $15.71 trillion), means that as of today, total US Federal debt to GDP is 103%. And rising about 1.5% per month.

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iDealMeat's picture

Might as well double it...   It'll never get paid off anyway..

Manthong's picture

“a modest increase of just $50 billion in the month”

Is that like a slight case of  TB or a touch of Ebola?

THX 1178's picture

16.159 Trillion? GOOD! Max out the credit card before you hyperinflate. Otherwise its just a waste. I wish it were higher. 

Skateboarder's picture

"Houston, we have a Ponzi."

Slewburger's picture

What's up with the perfectly inverted step function around July 2011?

AldousHuxley's picture

screw banks by dying with as much debt as possible.



prains's picture

the dying part is about to happen

yars's picture

The U.S. hit the ceiling in May 2011, hence the first step. Q2 GDP was reported higher than Q1, lowering debt/GDP and resulting in the step down.

Watauga's picture

Has to be George Bush's fault.

MillionDollarBogus_'s picture

16,394,000 is the wall;

Will be interesting to see where the next limit is set, and how hard it will be to set it.

LMAOLORI's picture



Now you know the meaning of a Perpetual Debt Slave and you can't even leave without paying a fine. And just think we can't default on less they do it on purpose  so they have you right where they want you.

Denise Rich Renounces U.S. Citizenship, Will Save Tens Of Millions In Tax Dollars


Denise Rich, the wealthy socialite and former wife of pardoned billionaire trader Marc Rich, has given up her U.S. citizenship - and, with it, much of her U.S. tax bill.

Rich, 68, a Grammy-nominated songwriter and glossy figure in Democratic and European royalty circles, renounced her American passport in November, according to her lawyer.


CrashisOptimistic's picture

This is the key issue that is being ignored.

The fiscal cliff negotiations are going to generate tons and tons of hand wringing about destruction of GDP growth and how the cuts and tax increases MUST NOT HAPPEN -- but if they don't happen we continue with 1.23T deficit and this time next year we'll be at 17+T.

FURTHERMORE, the Tea Party is NOT GOING TO LOSE THE HOUSE, in fact, they may gain seats from moderate Republicans.  When Boehner comes to the House GOP caucus with proposals, they will say NO DEBT CEILING INCREASE WITHOUT FY2013 cuts of same amount -- AS IN NOW.

No one really is focused on the true magnitude of what the fiscal cliff is going to look like.  

One thing I can predict.  The debt ceiling will be raised about 1 year's worth if Obama is elected.  It will be raised about 5 yrs worth if Romney is elected.

fonzannoon's picture

The tea party will fold under pressure like they did last time. The debt ceiling will be eliminated. The US will get downgraded. No big deal.

CrashisOptimistic's picture

But they didn't.

They got 2 Trillion in cuts for a 2 Trillion ceiling raise.  The upcoming Sequester is half of what the Tea Party got.  They got $1T immediate.

The criticism is the "immediate" cuts were backloaded to 2013 and outyears, and presto, here it is FY2013 and that IS the level of budget authority.  They DID get that $1T.

Where they may get screwed is in de-authorizing the Sequester, but if that happens, they'll become even more incensed and insist on more for the new ceiling raise.

They didn't get nothing.  They got delayed something, and the delay has now expired.

fonzannoon's picture

Where are the 2 trillion in cuts? How much in cuts has happened already? Barely any. As far as cuts that will be taking place after January? No way they happen. Those cuts will be eliminated. The market and the economy will be a mess and we all know that is no time for cuts. So both parties agree to kick that can again.

CrashisOptimistic's picture

The first trillion in cuts are from the baseline budget (which of all four candidates, only Paul Ryan understands).  They spread over 10 yrs starting FY2011.  There was a tiny cut in FY2011 and a bigger one FY2012.  And even bigger FY2013, which is all part of reduced spending vs the baseline.

The baseline is based on inflation and a few other factors.  It seems stupid, but there does have to be some sort of budget projection and the first trillion cut from that.  The second trillion is what the super committee failed to arrive out, triggering the Sequester, which starts 1 January.

If that is de authorized, then the GOP will have only gotten 1/2 of what they demanded for the debt ceiling increase, and with another pending, they'll demand even more.

This is not nothing.  This WILL empty cubicles nationwide.

fonzannoon's picture

Big picture it is a drop in the bucket. Hard default. Let's do it. I will make the call to China to offer our sincerest apologies.

Thisson's picture

The problem is that the GOP/Tea Party have no theory that justifies the cuts in light of the resulting decrease in GDP that will follow.

foodstampbarry's picture

Yes, I'm still waiting patiently for the results on the monkey's throwing poop and shrimp on treadmills. Have you heard anything?

centerline's picture

Pissing into a hurricane unfortunately.  The time to correct the system was missed long ago.  Now, all this fighting is only good to create waves of deflation and inflation which confuse the masses, strip them of real wealth, and stoke the divides (most artificial).  

Shit, I say pump it on up.  Screw the ceiling.  Remove the cap alltogether.  Put together a rock star budget and have at it.


Offthebeach's picture

1980 Reagan, Gingrich folded and went over the 1 Trillion. Been boob bait gobbled up by GOP dolts ever since.

Watauga's picture

Your very premise is false. The Tea Party did nothing of the sort.  John Boehner and his cronies folded.  The Tea Party is represented by a very small number of Representatives and Senators, if it is represented at all. 

Democrats, as revealed by the Obamacare votes, are purely Statists.

Republicans, as revealed by the Debt Ceiling deal, are mostly Statists.

The Tea Party supporters are anti-Statists, but their voices are barely heard because the Republicans did a masterful job of co-opting the momentum of those voices while giving back none of the substantive goals.  The anti-Statists in this nation will need to either reform and restore the original ideals and goals of the Tea Party or will have to start fresh with a new momentum. 

Flakmeister's picture

Do you actually believe all of what you just wrote?

Clark Bent's picture

If yer Obama, and despite your wanton lawlessness and czars (shadow gov) and subverting DOJ, and concealing banksters, and secret promises to the Soviets, and siding with Islam over America and its allies, and abandoning our troops in the field and losing the ME, Afghan, and Iraq, and they stiill re-elect else would you interpret that but as a mandate for "change" into the totalitarian state he has always dreamed of? I think that if O wins, this fact alone will engender a steep downgrade in American bonds, and his immediate resort to his 923 Executive Orders to declare emergency and shut down Congress and install his utopia. Who, exactly who, could stand in his way? 

Zap Powerz's picture

Who could stand in his way?

The hundreds of millions of armed Americans.  Im not saying he wont try, because he would.  Im just saying he will fail.  There is no way to control a nation this size, with this many people, with this many guns.  We cant even control Afganistan for fuck's sake!  You think the insurgency in Afganistan is bad?  The American insurgency would be much worse, much more bloody.

In the end, Obama would end up like Saddam, but that would be after lots of people have died.

ForTheWorld's picture

This would require a few things to happen:

- Hundreds of millions of Americans being armed
- The TV being turned off (including all handheld devices capable of streaming video)
- The sheep actually being wolves in sheeps clothing

People in the US are scared, but the fighters in Afghanistan are prepared to die in the fight. Who would be easier to defeat?

RSBriggs's picture

There are more sheepdogs around than you might imagine.  And, by the way, MANY millions of Americans ARE armed.

Vacca's picture

So what if they're armed? Do you really think an untrained, uncoordinated mass of civilians with little guns is going to stand up to the US military? Not for long.

centerline's picture

The bigger question is what side the military is going to be on.

ponyboy96's picture

Most of the people you speak of are ex-military. The US military would dissolve and not fight its brothers and neighbors. There was a study done years ago by the pentagon that came to that conclusion. The only armed resistance would be from law enforcement. However, this is all a mute discussion as it will never happen. Doesn't matter what the gov't does. For one do you think the media will actually inform the populace of what's really happening? Second do you think most people would stop shopping or watching TV long enough? No, people are fat and happy. As long as people can stay fat and happy then nothing will happen. When the youth and unemployed cant live any longer, that's when the SHTF. Unemployment is the biggest fear of govts.

Radical Marijuana's picture

You are an optimist!

The USA has an abundance of weapons of mass destruction. As the system drives itself mad, and destroys itself, there will come points where the armed forces will be issued orders that are TOO insane for all of them to agree to obey. At that moment, when some factions of the American armed forces decide to refuse to obey some excessively insane orders, the "real revolution" will have begun ... The chain of command will fragment, and various splinter groups will be in possession of their own pile of various weapons of mass destruction. After all, it will not be hard for soldiers given insane orders to discover and prove that their Commander in Chief has become BOTH the greatest foreign and domestic enemy to the constitution there has ever been! All that has to happen is that enough of the armed forces is pushed hard enough, by given sufficiently insane orders, that they finally decide that they must disobey, and then there is no turning back!

However, just as there is NO sane theory about how to fight a total war with weapons of mass destruction, there is NO sane theory about how to fight a real revolution inside a country with an abundance of mass destruction weapons. No group could be defeated, without destroying everybody. Any group with enough weapons of mass destruction effectively has the equivalent of sovereign immunity. Attempting to enforce any law against them will mean that almost everybody dies.

Although there are more private weapons in the hands of Americans than there are in most of the world's armies combined, ALL the gunpowder weapons taken together are trivial compared to weapons of mass destruction. ...

That is why there has been no violent revolution in the USA, so far, which is the same reason why there has not yet been a total war for about 70 years. The sheer insanity of that is the only thing keeping it at bay ... However, at the same time, the pressures are constantly going UP, as more energy, in little increments, gets pumped into the systems. Thus, we are building for stupendous social storms, beyond our imagination!

This sixteen trillion dollar overt public deficit is like riding a roller coaster riding going UP THE FIRST HILL ... and counting.  We have not hit the hammerhead stall point yet. We have no idea what it will look like when the exponential growth of the Neolithic style of civilization finally is forced to stop, and come back DOWN ...

The more we go UP, the more mad will be the ride DOWN.

I would propose the plainly obvious necessity to change our paradigms regarding militarism, war, and revolution, however, I do not expect that to make any practical difference.  My whole life I have been worrying about this combination of exponentially increasing everything, including debts, all backed by nothing but weapons of mass destruction. I WISH I could indulge in some over-simplistic fantasies about the Second American Revolution. However, the reality is way, way, way worse than that!!!

Watauga's picture

Look, the monsters are so much smarter than that.  The evil is prepetrated in bits and pieces, promoted by the MSM as right and healthy for the nation, and, over the long haul, we end up in a brave, new world. 

From the day Washington took the oath of office, evil men have used all sorts of evil acts to increase their power and wealth through the U.S. government.  The Founders knew this would happen, but failed to foresee that Congress would not have the courage to stop the expanding power of the Supreme Court (after Marhsall's fate-sealing powergrab in Marbury v. Madison) and the Presidency.  So, Lincoln destroys federalism and begins the slide to totalitarianism.  TR, WW, FDR, LBJ, RMN, the Bushes, and Obama were and are all simply natural powermongers who did and do all they can to seize power and wealth through government at the expense of the Constitution and The People.  Period.

This slow--200+ years--slide into totalitarianism will continue slowly.  Obama and a Republican controlled House and Democrat controlled Senate will simply steal more money, impose more regulations, and take away more individual liberty, over the course of the next four years.  Likely it would happen under Romney as well, but more slowly.  It is possible that war with Iran or in Syria will be used to speed up the process, just as Bush and his cronies used unnecessary wars to these ends.

By the time Americans wake up, it will be way, way too late.  50 million armed Americans (with possibly as many as 200 million firearms) will be split into factions, many of which will support the totalitarian regime.  The military and all law enforcement agencies will also be co-opted.  The 10-20 million Americans with the wherewithal and courage to defy the rise of Leviathan will die doing it, with little, if any, positive result.

I urge all ZH readers to read ENEMIES, FOREIGN AND DOMESTIC, a three volume novel by Matthew Bracken.  I think Mr. Bracken has it about right generally.   

spankthebernank's picture

Obama will be reelected.  Are you kidding me?  Any one who has any insight to the royal fucking the US will receive and the 'good work' Obama is doing for the oligarchs, knows with certainty he will be reelected.  The plan is to destroy the currency and run the country into the fiscal ground and introduce a 'new' global currency.

Renewable Life's picture

154 billion from the top!! One thing is for fucking sure, it will get raised and neither one of these clown parties we have in this Country, will cut spending or the deficit!  The fight will be about WHO gets the goodies, NOT if the goodies go out to the masses!

The second some politicians get in the way of the gravy train, they will get a little visit from their local emplyee at the pentagon, with a file in their hand, and bingo, votes go thru!! Eisenhower warned us about this shit 65 years ago, people didn't listen, the game is already over! The Tea Party is nothing put a straw man for the white middle class to "blow off steam" and pretend they still have power in this Country!!

Until we start to see violence in the streets, that organized, coordinated, and targeted at the elements that have enslaved us, you should just turn on the NFL game, relax and drink a couple beers, because NOTHING is happening and NOTHING will change!!


yogibear's picture

Bernanke, Evans and the rest or Federal Reserve money printers can double it in 4 years. More is better.

Zimbabwe economics is now the plan. Print until you bust. QE to infinity as the  Bernanke implied.


fockewulf190's picture

Wrote in Ron Paul for President on my absentee ballot and mailed if off. Even though I never would have voted for Obama under any circumstances, I will not compromise my views and vote for Romney either. Both of these chumps are going to lead us into yet another war, and no matter who wins, I guarentee our national debt will be higher in four years and the dollar all but destroyed. Only thing you can do is keep stacking phyzz and try to become as independant as possible. The big reset is coming. See you on the other side.

prains's picture


trust me when i say this "you won't be there"


adjust accordingly


seriously, you know you won't be on the other side 



Calidreaming's picture

This is still bullish right?

SemperFord's picture

Of course it's bullish, they can always rehypothecate the debt, right???

j-dub's picture

According to my sources, yes, it is still VERY bullish.  Keep buying and don't forget to offer your friends and family a taste.  Then, when the debt hits $100,000,000,000,000, sell the whole thing.

Madcow's picture

the number doesn't matter - only the slope of the line matters.  it must continue to increase - else there will be no net new money to feed all the previously existing debts and rents and bonds etc - 

it may sound like a crazy system - but its the only system we've got. 

anyone who argues we should "pay down the debt" doesn't realize that would be a death-blow to the financial system.

davidsmith's picture

Wake me when it's $48 trillion.  That's what it takes for the system to collapse.