Gross US Debt Surges By $240 Billion Overnight, US Debt To GDP Hits Post World War II High 97.2%, Official Debt Ceiling Increase Only $400 Billion
Two things happened when the Senate voted in the "Bipartisan" plan into law yesterday: i) deferred debt on the Treasury's balance sheet finally caught up with reality, and ii) as a result of i) America's Debt/GDP just hit a post World War 2 High of 97.2%. Becasue as the Daily Treasury Statement as of last night indicates, total US marketable debt surged by $124.6 billion, while debt in intragovernmental holdings (Social Security, Government Retirement Accounts, etc), soared by $113.6 billion, for a combined one day change of $238.2 billion, the single biggest one day increase of US debt in history. Obviously this is a result of massive underfunding and disinvestment in the various government retirement accounts as well as due to deferred debt which was to be booked since the debt was breached on May 16. However, how marketable debt could increase by a whopping $125 billion without any actual auction settlement is slightly confusing. Just as confusing is that according to the endnote in the debt subject to limit calculation, the new ceiling is not the $900 billion increase as requested, but only $400 billion more than the $14.294 billion previous, or at $14.694 billion. We hope this is some Treasury type or misunderstanding as this new ceiling will be breached in a month. And the last thing we need is this whole debt ceiling drama back again in September. One thing there is no confusion about, however, is that based on the latest gross debt number of $14.581 trillion, and the just reported Q2 GDP of $15.003 billion, total US debt to GDP is now a post World War II high of 97.2% (and that excludes the GSE off balance sheet debt).
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"If debt is the problem, how is more debt the solution"
- Ron Paul
You have my vote !
so now Ron Paul is Change We Can Believe in?
Like Obama was?
if Lobby Whore Government got us here? how is more Lobby Whore Government going to get us out of this mess?
Not only is the debt surging, so too is ZH site traffic.
Congrats ZH according to Quantcast you are on the verge of breaking into the Top 1000 (US) reaching 2m people/mth. I know you don't boast about traffic the way Mr. Wall Street, Ritholtz (LOL) does.
Yeah, but only 3 ZHers bewteen the ages of 3 and 12.
ZeroHedge IPO Baby!!
/sarc (but not that it wouldn't be the best IPO of the last 10 years)
Make that 4 as I am 7 years of age. Previous statement has same truth value as any economic stat emitted by US gov't.
Don't forget that many readers won't show up on Quantcast tables [nor any other trackers, such as google analytics].
i agree
What the heck, those statistics look weird. 55% of US ZH readers are older than 50 years, 77% are male, 87% have no kids and 50% make more than $100k/year.
You guise are pretty hip for some old farts..
What does that mean Chuck? want you're ass kicked?
Now help me out of this chair and find my glasses!
50 is not old, padawan. ... now 60, 60 is old ... ;-)
60 is not old, pawdner, now 80, 80 is old...;-)
Wow, that's pretty neat.
That many people's ideas shaped by one site.
He may not be but can it really get much worse than what we have now? Obama set the bar pretty low I think in terms of boneheadedness.
Besides, Dr. Paul's mottos is "End the Fed"....that's pretty smart if you ask me.
I'm a Ron Paul-ite myself, but careful: Obama said he'd have us out of Iraq 3 years ago.
I gave you a greenie for your avatar. But man you just don’t get it.
Re: you question below, only Tyler’s friends get to post pics. Re: your comment here, have a B9K9 comment on me.
Exactly. Having seen the exact same movie many times before, it would be the height of foolishness not to be positioned to both survive & thrive during the next iteration.
We've been in Iraq now for 6.5 years - twice as long as WWII. If it wasn't really just a make work program combined with resource consolidation, we would have been done & gone years ago.
Given these facts, one basically has two options: (a) be pessimistic; or (b) be optimistic. You can moan about how 'it will never end', or ... you can get excited about realizing that 'it will never end'. Get the distinction?
Imagine going to Vegas, and knowing that you would never lose. That's what option (b) implies - it will never end; ergo you will never lose. Therefore, a guaranteed means of gaining & securing wealth for oneself.
If you continue to reside in the US, mentally practice being a virtual ex-pat. Shed any vestiges of patriotic attachments and look dispassionately at the host. Do the people & its system even warrant sympathy? Or does it deserve everything it's going to get?
Once you view the world throught the lense of the latter perspective, you'll find yourself free to think clearly about what's goin' down.
http://www.zerohedge.com/article/deflation-vs-hyperinflation-debate-steroids-or-mish-vs-gonzalo-lira-octagon#comment-576140
O/T
It'll end when IsrAmerica attacks Iran. Quite a few things will end about then.
Sounds like they have to look at a financial statement to know when to end a war...? Rufusbird
maybe he can reach the W. Bush benchmark of quality?
Actually, the shock of withdrawal will kill the patient. He will be vilified for actually doing the right thing. Taking on the US economy now as a responsibility is a "hospital pass" - which in football is when you get the ball just before several big guys tackle you and wipe you out. I'm really mixing my metaphors today, sorry about that. It’s an onion thing. Anyway, Ron Paul, as much as I like him, will be used in this game before the end. It will be when there is absolute certainty of failure. Libertarian ideals will be crushed as it will be too late for them to work. Then the drastic NWO desired outcomes are implemented in the dead of night. Now, where are my meds? Ah, here they are – tucked safely inside my foil hat. Yummy.
I like it...Ron, Hospital Pass, Paul...sounds catchy!
lol
lol
How bad can it get, you ask ??
How bout the Mexicans leaving California to find a job in Mexico ?
http://www.sacbee.com/2011/07/28/3799513/improving-mexican-economy-draws.html
maybe mexico will build that fence to keep their own people from coming back.
You almost had it Careless, they will build it to keep us OUT!
They're waiting for us to finish building the fence to keep the Americans in.
Just returned from a week in Mexico last night and I'm really starting to notice that the dollar is not as welcome as it used to be. I've been going there for a long time and in the last year or two I've noticed that people sometimes say they would prefer pesos rather than dollars. That never happened until recently. Many merchants won't give you as favorable a conversion rate as the official rate either.
that happened to me in Canada
Ron Paul has been totally consistent his entire career, which is a LONG one. If you can't see that then you are just stupid, ignorant, or both.
Good to see you, Tmos. Where you been hidin'?
I think you can find him on Turd's blog on occasion.
Bingo.
"lobby whore" and ron paul in th same sentence???
Bwaaahahahahahahahaha
Not too familiar with Mr. Paul, are we?
he is one man surrounded by a sea of lobby whores.. does it make more sense now that it has been dumbed down to a 3rd graders level?
you fucking idiots are the problem.. if there was a sea of ron pauls you stupid fucks would elect Bush again
Go tell it to your Iranian handlers. They might care.
Go tell it to your Zionist handlers. They might care.
Can I give you a hug? You are right, we are stupid. But aren't we all?
debt has never been a problem. But getting elected or reelected is.
http://www.youtube.com/watch?v=xIraCchPDhk&list=FLRBygxQRLWlo&index=121
Either you are a troll, or clearly clueless about Ron Paul. Lemme guess: Obama supporter, 2008
Do you have a solution that doesn't involve genocide?
Where Jews are conerned, it always involves "genocide"...only question is "who/whom".
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Lobbyists just walk right past his office. They know he can't be bought.
It's like telling a fat guy to lose weight he needs to eat more donuts.
More like telling fat people that it's the bun on a bacon cheeseburger that makes them fat.
Millions of people bought into that as well.
Because without increaseing the debt you will have no fresh money. Like a wife who maxi's out your credit card. Do you get a home line of credit on your 10million dolar home to pay for a 1million balance on your credit card. Or do you default on that card and take aout a 3million creditline on your home?
Kids, pets and lawn aside there are reasons to increase the credit limit...if done in a non-stupid way.
But doiing so to make another shoping trip to the Walmart may not be the best.
Its not the limit on the debt its the ability and willingness to pay. Like a crackhead with a HELOC your going to end in court.
no , it's not when you can't pay, it doesn't matter then, it's all the damage you did trying to keep paying that crushes you.
By the time you can't pay you are already deadmeat.
get a clue.
By the time you can't pay you are already deadmeat.
It feels like that, but in hindsight it was not so bad. October, 2007 was the last month I could afford to pay. It was horrible when it happened. I envisioned losing everything even though just months before my debt had only equalled 1/2 of my real estate assets. So anyway, I had no choice, I defaulted. I had tried to put a loan on my fully paid off home to not default, but they thankfully turned me down. I lost 1 property to foreclosure, and was able to keep the rest. Only 2 banks have tried to sue me, and only 1 of them won. So, in 2 months when the statute of limitations are up if no others try to sue me before then, I will only owe $8,000 of the $300,000 I defaulted on. I lost 1 property worth about $180,000 at that time that had been worth $400,000 the year before. In hindsight it did not turn out too bad at all. It was my own personal bailout. I opted to just ignore the phone calls for the last 4 years rather than go bankrupt. If I'd have went bankrupt, they'd have made me sell my properties for pennies on the dollar until they were all gone and still the banks would have not been paid off. The government bailed out the banks, and I found my bailout in just ignoring the creditors.
My personal experience with defaulting shades my opinion of the country defaulting. The sooner you default, the less you make it worse by borrowing more, and the sooner you recover.
for a combined one day change of $238.2 billion, the single biggest one day increase in US debt in history!
How much of that went back to the Lobby that paid for this mess?
Not to worry, JW. Chevy sold 125 Volts in July, and they're building 5,000 more. The O team is chock full of business wonderboys & girls. They'll pull us out of this hole, no problem. /sarcasm off
I'm not picking on you specifically, but why have people decided that they need to let others know when they are being sarcastic in print? If you have to tell someone something was a joke, was it funny? One of the funniest things is watching people respond to obvious sarcasm while not "getting it." I love that.
Not getting what?
Milk went out my nose.
split peas..........................
Are you gonna eat those?
/sarc off
True, and duly noted.
Are you collecting down-mods?
"mission accomplished"- greasy, hairy annonymous central banker.
I'm thinking not. This makes QE3 (at least in the most recent historical form of QE) impossible. Debt ceiling would be breached before the Dec 23 deadline of the debt bill. Banks wanted QE pretty badly, so I can't think they think this is mission accomplished.
shocking...what a surprise
I thought the last week's debt debacle was fun. It focuses the mind and helped gold to rally $80. If we can do this ever month until the election we can maybe get over $2500. :)
It's not a debt ceiling, it's a debt target.
I think they put helium in that target, it keeps going up!
Question, when i check wiki
http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt
it displays US debt 2010 at 59% of GDP and states CIA Factbook as source. Does anybody know the difference between the Debt calculated here and the Debt the CIA calculates?
One's a lie, the other's a fucking secret.
hahhahh, brilliant!
The debt grows so fast that Wiki cant keep up with updates ;p
The CIA doesn't include intragovernmental holdings (SS trust fund, etc) in their debt/GDP calculations. It's a scam.
I see. Thanks. So much for FACT Books...
Why is this? Because they are required to pay back the public debt portion of the national debt (Wall street, China, etc.), but not the intragovernmental portion of the national debt (Social security and Medicare trust funds, pensions funds, etc.)? They can just cancel it?
Ah, no....in general they don't "pay back" any portion of the ND...the Ponzi artists just roll it over with more debt issuance.
Whatever you do, don't stop and don't look back. Put the pedal to the metal and pay no attention to the horrible grinding noise and shaking of the automobile. And definitely ignore that tire that just bounced past.
This will end well.
Good visual
"And the last thing we need is this whole debt ceiling drama back again in September."
BULLSHIT! This is exactly what we need. In fact, we should be having a real conversation regarding the spending of Washington DC EVERY SINGLE DAY until the American people begin to realize the enormity of the problem. That $400 Billion increase that will last ONE MONTH is EQUAL TO the "proposed" average spending cuts FOR FOUR YEARS. YES, WE CAN have this conversation.
The time for talking is over. Let this sucker crash. Talking does not work.
Yeah, I've been saying that for years. Glad more people are realizing it.
People should take note of Fight Club, and what the fuck Palahniuk's Tyler Durden was saying, anyway. Penguin says, "Slide." So slide, bitchez.
My power animal is Kim Jong-Il.
Mine is Michelle.
mine is Incubub
There are no cuts.
There will be no cuts.
There will likely only be reductions of funding increases.. if it holds together.
Obama will be "The raiser of taxes in the glory of the kingdom".... It's his destiny
A reduction of an increase flattens out the curve at the derivative level, looking good on paper, but doing nothing in reality. Derivative-Level thinking brought us the series of bubbles we're seeing nowadays. Derivative-level thinking, considered in a vacuum, away from any real goods, commodities, or things upon which it might possibly be built, which the People bought hook, line, and sinker. They think that the Derivative level is the only thing there is. They've been conditioned to consider the tertiary economy as the only economy. Thus, they will see reductions of the increases as if they were actual cuts, and not so much bullshit. There are cuts, but there are no cuts. This is to be considered by those who would be warriors.
Marketable debt surges without an auction.
Who's keeping the books, the BLS?
New seasonal adjustment fucktors?
Or is the Gimp missing something?
http://www.youtube.com/watch?v=wAv4s8050hs
Let that guy loose in congress!!! I hear he likes bananna clips.
My guess is PDs were bypassed entirely. The Fed is loaning/printing directly to the US Treasury now, no check kiting or other pretense any more (probably been going on) now it is out in the open. Too many auctions to fake.
Now Congress will have something to do when they all get back from the August recess instead of discussing what they did during their summer vacation.