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Starting Off With A Bang: In First Month Of Fiscal 2013, US Adds $195 Billion In Debt

Tyler Durden's picture





 

It seems like it was only yesterday that the US closed the book on Fiscal 2012 (technically, it was September 30), with a modest $16.066 trillion in debt. What was notable is that the monthly additions to the total debt balance toward the end of 2012 were getting smaller and smaller until the October incremental addition was a puny $50 billion (even though mysteriously the US ended up with a budget Surplus of $75 billion for the month). Turns out it was merely yet another political stall tactic to avoid the true face of America's debt peeking into the open public. Because as of several hours ago, the DTS announced the total debt as of October 31, or the first completed month of fiscal 2013. The number: $16.262 trillion. This means that in the month of October, when delaying displaying the true creditor plight of this country was no longer an option, Uncle Sam went to town, and raised $195 billion. This amounts to $6.3 billion per calendar (not work) day, and $262 million per calendar (not work) hour.

Keep in mind that this is happening as both the household, financial and corporate sectors are no releveraging, so one can't use the argument that the US is merely picking up someone else's slack. And with total debt subject to the ceiling now at $16.222 trillion, and with the ceiling at $16.394 trillion, it means the US has $172 billion in incremental debt capacity, or if one were to use the rate of October change as a benchmark, roughly 26 days until breach and the mandatory raiding of various government funds has to commence. The breach will with absolute certainty happen before the year is out, or just as the negotiations over the fiscal cliff are in full swing...

 


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Thu, 11/01/2012 - 20:47 | Link to Comment Zero Govt
Zero Govt's picture

those Washington credit card junkies just won't stop

bubble Ben has said in hushed tones they've got to get their act together, but behind the scenes he's throwing credit cards at them like there's no tomorrow (there won't be a tomorrow at this rate!)

Bubbles you need to take the credit cards away, you already own 60% of the junkies debt. Fiscal discipline time, no saying one thing and doing another, we'll think you're kidding everyone, like your tripe about helping unemploymment and stimulating the economy

you truly want a recovery, stop throwing $trillions at the losers in DC and WS

Thu, 11/01/2012 - 20:54 | Link to Comment lineskis
lineskis's picture

Where is all this money going?

Thu, 11/01/2012 - 21:03 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Ask the guys who left NYC in their personal helicopters before the storm hit.    

Thu, 11/01/2012 - 21:06 | Link to Comment Mark Carney
Mark Carney's picture

Sandy says you aint seen nuttin yet, bitchez!!!

Thu, 11/01/2012 - 21:12 | Link to Comment fonzannoon
fonzannoon's picture

 You are absolutely right LTER. They are gone. Their houses are all empty. Without power their security is disabled. Just sayin.

Thu, 11/01/2012 - 22:14 | Link to Comment LeisureSmith
LeisureSmith's picture

Hmm...Wonder how many safes has been cracked and how many walls will be found to be missing some expensive artwork, when the caviar crowd returns home. Cat burglar bonanza.

Fri, 11/02/2012 - 07:23 | Link to Comment jeff montanye
jeff montanye's picture

there was a time when not that long ago (reagan, bush1, clinton) when an annual federal deficit of the magnitude of the current monthly ones was a cause for concern.  for that earlier period the thirty year bond required a coupon north of 6% to sell.  now, at least since mid may, south of 3% does the trick.

Thu, 11/01/2012 - 21:11 | Link to Comment Mactheknife
Mactheknife's picture

A trillion here...a trillion there, pretty soon you're talking about real money.  No wait..I forget, it's not REAL money to start with.  Two words...GOLD BITCHEZ!

Thu, 11/01/2012 - 22:55 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

In a word: Yes.

Thu, 11/01/2012 - 22:28 | Link to Comment disabledvet
disabledvet's picture

going? you mean "going, going...GONE"...that's where the money is "going to." at one time your tax dollars went to Federal Programs...now it goes to "a trading algo designed to mimic the sound the humpback whale makes when it...and that'll be one trillion for that one alone."

Thu, 11/01/2012 - 23:54 | Link to Comment stocktivity
stocktivity's picture

I'll be glad when this stupid election is over and the numbers no longer need to be fudged....It's all Bullshit!  Even more so a week before election. I'd almost bet the unemployment % goes down in the morning.

Fri, 11/02/2012 - 11:39 | Link to Comment tabasco71
tabasco71's picture

Technically, increase in debt is not a problem as long as it is growth in working capital which is inflating debtors... on these figures, USA should be growing like crazy just now....  whats the US's GDP for FYE2012 looking like?

Thu, 11/01/2012 - 20:46 | Link to Comment fonzannoon
fonzannoon's picture

right before my power finally gets turned on the dollar is going to collapse and the good news I won't know the difference.

Thu, 11/01/2012 - 20:50 | Link to Comment The big unzip
The big unzip's picture

With a major natural disaster to pay for it mght happen sooner than that.  Maybe Bernanke can just print money under the table and extend the problem down the road again.

Thu, 11/01/2012 - 20:51 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Yes, Sandy is going to be the ultimate excuse for both parties to kick the can straight off the abyss.

Thu, 11/01/2012 - 20:55 | Link to Comment eXMachina
eXMachina's picture

or just drop off a few pallets of "benjamins" via helicopter at downtown NY! Instant stimuli, just add water!

Thu, 11/01/2012 - 20:51 | Link to Comment lolmao500
lolmao500's picture

Meh. That little troll Geithner will come back from wherever he's been in the last year and extend the BS for a few more months while the MSM crank up their ``we must raise the debt ceiling otherwise the US will default`` line of BS so the sheeple accepts it.

/let's remember, if the debt ceiling is not raised, the US doesn't default on foreign creditors... they default on the rainbows-crapping unicorns they've promised to the American people for the last 30 years. Do like Ron Paul said... default on the bonds owed to the FED... that would mean -$1.6 trillion in debt with no consequences... except Ben throwing a fit.

Thu, 11/01/2012 - 21:24 | Link to Comment northman
northman's picture

I don't understand why there hasn't been more coverage of this in the MSM. Given that the debt ceiling will likely be breached within the next 20 days or so, and the Congress hasn't even started talking about it. Nevermind the fact that there is a Presidential election, and a Chinese transfer of power. They have a great deal to talk about and not much time to sort it out before the ceiling is hit. And realistically I'm not sure it matters who they default on. The end result will likely be the same.

Thu, 11/01/2012 - 22:32 | Link to Comment ceilidh_trail
ceilidh_trail's picture

Northman: there hasn't been more msm coverage because their boy is the current officeholder and we are 5 days from election day. msm (not worthy of capital letters) is a joke- katie couric, sam the champion, bryant gumball, all the other chickies and light-in-their loafers boys are ---- a JOKE! You ever see the huys on cnn/cbs/nbc/abc? Good Lord!

Thu, 11/01/2012 - 20:51 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Just when you think you've seen it all.....POW.....they hit ya right in the kisser.

Thu, 11/01/2012 - 21:24 | Link to Comment northman
northman's picture

POW...right in the kisser.

Thu, 11/01/2012 - 20:55 | Link to Comment km4
km4's picture

Obama to Bloomberg

 

OK here's the deal.....you endorse me and I'll make sure I spend $50 billion getting NYC back

Thu, 11/01/2012 - 20:57 | Link to Comment surf0766
surf0766's picture

Can I get a swipe  please?

Thu, 11/01/2012 - 20:58 | Link to Comment Yen Cross
Yen Cross's picture

I love the smell of "Debt Ceilings" in the morning!   Smells like"satisfaction"...

Thu, 11/01/2012 - 21:07 | Link to Comment recidivist
recidivist's picture

Between deficit spending and QEternity there is an ever-increasing flow of extra dollars chasing finite fungibles. Savers must be punished.  When Medicare and Medicare patients are turned away from hospitals because the dollars are no good, it may end up being the VA that has to pick up that slack. 

But there will have to be some other currency that steps in as the preferred safe haven.  Renminbi?  Not until China gets a better judicial system to address systemic corruption?  Euro? Fuggedaboudit.  Which nation will step up?  Will it just be precious metals?  Are we going to pay each other with pieces of eight?  Brave new world...

Thu, 11/01/2012 - 21:07 | Link to Comment lolmao500
lolmao500's picture

From all the trends, the US will hit the debt ceiling around November 30... but Geithner can play game to extend the game till at least the new congress...

Thu, 11/01/2012 - 21:19 | Link to Comment knukles
knukles's picture

Everybody's so tired of Timmah as SecTreas, they're gonna move him to Chair of the Fed as soon as they get a free Saturday on a holiday weekend.

Disturbing.... It wouldn't change a thing...

 

(wimpering sounds)

 

Thu, 11/01/2012 - 21:09 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

MUST WATCH: Frank Giustra Explains Why the Fed Will Be the Only Buyer of US Debt and Is In A No Way Out But to Print Situation. Gold Price To Rally Regardless Of Who Is Elected President

http://investmentwatchblog.com/must-watch-frank-giustra-explains-why-the-fed-will-be-the-only-buyer-of-us-debt-and-is-in-a-no-way-out-but-to-print-situation-gold-price-to-rally-regardless-of-who-is-elected-president/

Higher jobless rate predicted by budget watchdog

http://www.cbc.ca/news/business/story/2012/10/29/pbo-growth-outlook.html

Thu, 11/01/2012 - 23:26 | Link to Comment JLee2027
JLee2027's picture

Yes, but isn't that old news? I can't think of anyone buying our debt in the past couple years.

Thu, 11/01/2012 - 21:10 | Link to Comment adr
adr's picture

I don't know why the bank gives a shit about what my house is actually worth. They are going to hold the refinanced mortgage for about a hour or so. The mortgages are packed into securities for the Fed to buy as soon as they are written. The loan officer told me so.

Yet I can't refinance because some crap appraiser says my home is worth $15k less than a couple years ago.

Thu, 11/01/2012 - 21:16 | Link to Comment JustObserving
JustObserving's picture

"$262 million per calendar (not work) hour."

You can give $48 per day to each working American with that kind of money. Or $17,520 per worker per year.

If you gave the increase in unfunded liabilities, each working American would get $52,307 per year.

Together the net increase  in debt and unfunded liabilities could provide $69,827 per year for each of the 130 million workers in USA.

Or, if you prefer, you can give $76,500 to each household in USA every year.


Fri, 11/02/2012 - 06:44 | Link to Comment Hobbleknee
Hobbleknee's picture

Why would they give anything to us?  Did you fall on your head?

Thu, 11/01/2012 - 21:12 | Link to Comment TrustWho
TrustWho's picture

potus gets elected by winning electoral college but losing popular vote. The last debt ceiling was resolved with the fiscal cliff. The house will be pissed and loaded with Tea Party reps. The USA is about ready to hit the wall....splat.

Thu, 11/01/2012 - 21:14 | Link to Comment knukles
knukles's picture

Hey.
If Romney gets elected, at least the rhetoric'll change.

Thu, 11/01/2012 - 21:17 | Link to Comment Yen Cross
Yen Cross's picture

 Who woulda' thunk, zombies can read without teleprompters?

Thu, 11/01/2012 - 21:16 | Link to Comment max2205
max2205's picture

Now ny wants the Feds to pay 100% of 6b clean up BECAUSE THE FEDS CAN PRINT MONEY. THEY ACTUALLY SAID THAT

Thu, 11/01/2012 - 21:23 | Link to Comment fonzannoon
fonzannoon's picture

I am not sure where that was said but are you surprised? Bail out the auto's because we can print it. Bail ou the banks because we can print it. Pay the 52yr old retired public sector 100k pensions because we can print it.

The Dollar is the reserve currency and we can print them to infinity, of course these ass clowns are going to demand we paper over everything until it's game over. The only amazing thing is they have managed to keep it going this long.

Thu, 11/01/2012 - 21:26 | Link to Comment max2205
max2205's picture

Must be a back door deal. Bloomy threw his vote to Obama 5 days before election day. Coincidence I think no

Thu, 11/01/2012 - 21:44 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

 

You men eat your dinner
Eat your pork and beans
I eat more chicken
Than any man ever seen, yeah, yeah.

Thu, 11/01/2012 - 21:34 | Link to Comment knukles
knukles's picture

Hey Fonz.  I just had a thought (danger)
So askin' or hopin' for any change in the Federalies expenditure/deficit behavior seems kind remote by most folks reckoning.
But I'll betcha there's one item will be big almost nobody even talkin' about.  Whoever wins, the other half the electorate gonna be in one MF raging anger... which ain't gonna be good for consumer attitudes... look out for the Big Hunker Down.
Especially once the winning half sees that the win don't mean shit from shinola anyhow.  The other half the Big Consumer Hunker Down

Thu, 11/01/2012 - 21:56 | Link to Comment fonzannoon
fonzannoon's picture

I was telling Doc last night, this is particularly weird for me. To have no power, gas etc. and to see others that do. The anger that is boiling and the difference between the have's and the have nots...I have been expecting this. I thought it would be inflation and currency as the catalyst. As per politics. I want a Romney win because all the dip shits that keep telling me this is the most important election in my lifetime will have to realize at some point Mittens is just as stuck and the path was pre determined. If Obey wins I think repubs crash the debt ceiling and all the rest. But at the end of the day it does not matter to me. We are toast. The only difference is where I live the zombies have already started roaming around town. The only question left for me is do I stick around or bounce.

Thu, 11/01/2012 - 22:36 | Link to Comment Bennie Noakes
Bennie Noakes's picture

You mean some people have things that others people don't. That's unfair!

The government should do something about that. Like send in the National Guard to cut any power lines that are still working.

Thu, 11/01/2012 - 21:27 | Link to Comment eddiebe
eddiebe's picture

The amazing thing is that they can keep this game going. You would think gold and silver especially and energy and food also would just go through the roof already, and yet they just keep printing all over the world and the Pm's just languish and oil is even dropping. Remarkable.

Thu, 11/01/2012 - 23:15 | Link to Comment BeerBrewer09
BeerBrewer09's picture

Poised for re-election.

Thu, 11/01/2012 - 21:40 | Link to Comment John Law Lives
John Law Lives's picture

But... but... but... stawkes are up.  That makes everything peachy keen, right?  The Bernank pumped the markets...

100% FUBAR.

Thu, 11/01/2012 - 22:00 | Link to Comment eddiebe
eddiebe's picture

Fonz, my thought is: bounce!

Thu, 11/01/2012 - 22:05 | Link to Comment fonzannoon
fonzannoon's picture

I am outside of town a bit and have some decent neighbors. That is the case to stay. Also, it may be a few weeks and a few new benny bucks spread around, and it should come around. The flip side is, and I knew this, but had to see it to understand...is I am compleetely dependent on the distribution of fuel to make it. Shut down gas delivery and you shut down food delivery and the ability to travel. So now I have to dedicate myself to having  destination that is more self reliant and also a means to get there. When this happens for real I am not going to stick aorund.

Thu, 11/01/2012 - 22:03 | Link to Comment chump666
chump666's picture

It will be interesting when NY puts out it's hand and they won't get anything...and yet the FED is on infinity too Wall Street (and the housing recovery lol!)

Oh dear this is going to get so nasty so quickly.

F*ck Obama and Romney.

Thu, 11/01/2012 - 22:42 | Link to Comment monopoly
monopoly's picture

Just read in the NY Times. Losses for Sandy now estimated at 50 Billion. It will get to Zero Hedge's number before too long. And at some point, gold, silver, miners will rip along with oil and commodos. They cannot keep it down forever. Do not fall prey to those who want your gold. Stay the course.

Thu, 11/01/2012 - 22:54 | Link to Comment fuu
fuu's picture

Almost a dollar an hour out of every pocket.

Thu, 11/01/2012 - 23:15 | Link to Comment MFLTucson
MFLTucson's picture

And people are willing to vote for more of this insanity?  

Thu, 11/01/2012 - 23:27 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Yes...

"...DTS announced the total debt as of October 31."

But more importantly...

the DHS explained to me why I'm OK with it.

 

 

["...an Americaaaan. Where at least I know I'm freeee..."]

Fri, 11/02/2012 - 07:52 | Link to Comment djsmps
djsmps's picture

The world envies our freedom.

Fri, 11/02/2012 - 00:00 | Link to Comment topspinslicer
topspinslicer's picture

Let's get this party started

Fri, 11/02/2012 - 05:02 | Link to Comment Bastiat009
Bastiat009's picture

Playing Devil's Advocate here: why is it bad? It's been going on for years and nothing is happening. Morons all over the world are willing to loan money to the US knowing full well they will never see that money again. Poor people vote for the politicians that are making them poor. Rich people love the debt because their entire "industry" is based on debt. So once again, why is it bad? Will the debt prevent me from buying a phone??

 

And before I forget, all that is not very positive for gold while it seems to be rather good for the US$.

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