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

Tyler Durden's picture

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).

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
km4's picture

"If debt is the problem, how is more debt the solution"
- Ron Paul

You have my vote !

JW n FL's picture

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?

wang's picture
wang (not verified) JW n FL Aug 3, 2011 5:21 PM

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. 

Spastica Rex's picture

Yeah, but only 3 ZHers bewteen the ages of 3 and 12.

Almost Solvent's picture

ZeroHedge IPO Baby!!


/sarc (but not that it wouldn't be the best IPO of the last 10 years)

CompassionateFascist's picture

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.

Use of Weapons's picture

Don't forget that many readers won't show up on Quantcast tables [nor any other trackers, such as google analytics].


Chuck Mentzel's picture

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..

Dapper Dan's picture

What does that mean Chuck? want you're ass kicked?

Now help me out of this chair and find my glasses!

Cast Iron Skillet's picture

50 is not old, padawan. ... now 60, 60 is old ... ;-)

rufusbird's picture

60 is not old, pawdner, now 80, 80 is old...;-)

jonjon831983's picture

Wow, that's pretty neat.

That many people's ideas shaped by one site.

inkarri9's picture

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.  

inkarri9's picture

Besides, Dr. Paul's mottos is "End the Fed"....that's pretty smart if you ask me.

Diatribe's picture

I'm a Ron Paul-ite myself, but careful:  Obama said he'd have us out of Iraq 3 years ago.

Vic Vinegar's picture

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.

Mr Lennon Hendrix's picture


Japan has intervened in the currencie market.

CompassionateFascist's picture

It'll end when IsrAmerica attacks Iran. Quite a few things will end about then.

rufusbird's picture

Sounds like they have to look at a financial statement to know when to end a war...? Rufusbird

InconvenientCounterParty's picture

maybe he can reach the W. Bush benchmark of quality?

saulysw's picture

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.

Rainman's picture

How bad can it get, you ask ??

How bout the Mexicans leaving California to find a job in Mexico ?

Careless Whisper's picture

maybe mexico will build that fence to keep their own people from coming back.

MsCreant's picture

You almost had it Careless, they will build it to keep us OUT!

FeralSerf's picture

They're waiting for us to finish building the fence to keep the Americans in.

decon's picture

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.

Vendetta's picture

that happened to me in Canada

tmosley's picture

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.

mtomato2's picture

Good to see you, Tmos.  Where you been hidin'?

Blano's picture

I think you can find him on Turd's blog on occasion.

Sgt.Sausage's picture

"lobby whore" and ron paul in th same sentence???


Not too familiar with Mr. Paul, are we?

JW n FL's picture

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

XenoFrog's picture

Go tell it to your Iranian handlers. They might care.

CompassionateFascist's picture

Go tell it to your Zionist handlers. They might care.

tarsubil's picture

Can I give you a hug? You are right, we are stupid. But aren't we all?

YesWeKahn's picture

debt has never been a problem. But getting elected or reelected is.

clymer's picture

Either you are a troll, or clearly clueless about Ron Paul. Lemme guess: Obama supporter, 2008

XenoFrog's picture

Do you have a solution that doesn't involve genocide?

CompassionateFascist's picture

Where Jews are conerned, it always involves "genocide"...only question is "who/whom".

mason5566's picture

Today everyone wants their motorbikes Motorcycle fairings with a good engine, good look Ducati fairings and also with a good mileage Kawasaki fairings right? And for that getting the right motorcycle parts is the basic need Yamaha fairings So getting the right parts for your motorcycle Suzuki fairings is not only a matter of variety or style Honda fairings but here 'Necessity' is the most important consideration. All parts are not there to make your bike look nice and sleek. ABS Fairing play a critical role in the Motorcycle Aftermarket parts 's performance and safety. And of course it does not make sense Motorcycle windscreen if you try to save a few bucks on Motorcycle brake disc which have the possibility of an Motorcycle front brake disc accident because savings is not that valuable compared to your life Motorcycle rear brake disc . Thus, you must purchase the best quality of the parts for your motorcycle Motorcycle Frame Slider at your most trusted store. There is Motorcycle Frame Slider equally important that you have the knowledge of the Motorcycle Speedometer parts of motorcycle to get the specific parts you need that suits the Motorcycle Speedometer Cluster Gauges model of your bike. Sometimes, it is frustrating to find out that the motorcycle parts store in your Motorcycle Air Cleaner Kits state doesn't have any of the items you badly need.The suppliers of Motorcycle parts of Motorcycle Rearset Footrest can be hard to find in a lot of areas of the country.

You possibly will not need to get as various mind put on a motorcycle, but in the occasion you possess a Motorcycle fairings spouse which you appreciate with cycling. on this case, there is a particular objective of Honda Fairings to support make certain which you have sufficient on the sport activity bicycle Suzuki fairings Luggage storage space space containers. You can preserve most on the motorcycle Kawasaki Fairings motorcycle accurately inside cabin gear.Made motorcycle boots all through the century. nowadays there are various different sorts and Ducati Fairings to pick from these days. Identified various on the masters on the older motorcycles, leather, Yamaha fairings, along the lines of the variations utilized in 1945 and that may be the various amounts of comfort towards the masters of different bikes. Wholesale Motorcycle Accessory on the oldest occasions are permanent, and also the best attributes to support protect from melts away muffler.

Gold Man-Sacks's picture

Lobbyists just walk right past his office.  They know he can't be bought.

MarketTruth's picture

It's like telling a fat guy to lose weight he needs to eat more donuts.

Animal Cracker's picture

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.  

bbq on whitehouse lawn's picture

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.