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As US Closes June With $15,856,367,214,324.44 In Federal Debt, US Debt/GDP Hits Post WWII High Of 101.5%

Tyler Durden's picture


Last week's bond auctions have finally settled and the numbers are in. As of the last day of June, the US had a record $15,856,367,214,324.44 in debt, a $75 billion increase overnight, and a post World-War II high Federal debt/GDP ratio of 101.5%.* That is all.

* Assuming GDP in Q2 grew at a 1% sequential rate, which in light of the global economic contraction, is quite generous.

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Mon, 07/02/2012 - 16:29 | 2581630 Dick Darlington
Dick Darlington's picture

We need MOAR!

Mon, 07/02/2012 - 16:35 | 2581649 sunaJ
sunaJ's picture

Somebody had to buy all those bonds at auction.  Didn't know it was you and me, did you?

Mon, 07/02/2012 - 16:39 | 2581665 Manthong
Manthong's picture

And it seems like just a few short months ago it was less than 100%.  Oh wait…


Mon, 07/02/2012 - 16:43 | 2581679 veyron
veyron's picture

Soon we'll find out that the computer programmer accidentally multiplied the gdp number by 2, so that we actually are above 200% debt to gdp ...

Mon, 07/02/2012 - 16:47 | 2581697 SHEEPFUKKER

Just a rounding error. 

Mon, 07/02/2012 - 16:59 | 2581749 knukles
knukles's picture

Seasonally adjusted rounding error

Mon, 07/02/2012 - 21:29 | 2582355 Harlequin001
Harlequin001's picture

Well done guys, that's nearly $1 trillion for a postage stamp, yet to b e priced in...

Mon, 07/02/2012 - 17:00 | 2581750 Stackers
Stackers's picture

I wonder what the percentage is if GDP was recalculated using the old method from 30 years ago ?

Mon, 07/02/2012 - 17:03 | 2581760 knukles
knukles's picture


Like unemployment would be closer to U whatever at 20%+.


Good thought....

Mon, 07/02/2012 - 20:52 | 2582296 economics9698
economics9698's picture

122% with state and local.

Mon, 07/02/2012 - 17:03 | 2581761 NotApplicable
NotApplicable's picture

You really don't want to know.

Besides, until government spending is removed from the GDP equation, it will never measure growth, but instead, only consumption.

Mon, 07/02/2012 - 17:12 | 2581786 Buckaroo Banzai
Buckaroo Banzai's picture


Mon, 07/02/2012 - 17:21 | 2581813 DaveyJones
DaveyJones's picture

It's good to break a US and Olympic record.

A gold medal is the only appropriate response

Mon, 07/02/2012 - 17:26 | 2581829 The Watchman
The Watchman's picture

I'm so tired of talking trillions. Ben needs to add a couple of zeros to the discussion. Wake me up when we're talking quadrillions.

Mon, 07/02/2012 - 20:18 | 2582242 Anonymouse
Anonymouse's picture

Do they make tungsten medals?

Maybe that's why incandescent light bulbs were banned.  We need the tungsten for national security purposes.

Mon, 07/02/2012 - 17:30 | 2581843 JackT
JackT's picture


Mon, 07/02/2012 - 20:07 | 2582219 Buck Johnson
Buck Johnson's picture

Yep we are buying are own debt, but in this twisted economic world thats not considered bad at all.

Mon, 07/02/2012 - 17:22 | 2581817 stocktivity
stocktivity's picture

It's all Bullshit!   The Fed prints more $$$ out of thin air to buy more debt and keep the markets up. All in the hope that stupid Americans will see their 401 K rising and thus spend more money now.

Mon, 07/02/2012 - 18:02 | 2581940 Blankenstein
Blankenstein's picture

Being good little sheeple, they are falling for it hook, line and sinker.   In the Chicago area they are spending it on expensive homes.  It's unbelievable the number of "under contract" homes in my area.  The NAR propaganda campaign worked like a charm.  The prices aren't much off the highs of the bubble either.  IT'S CRAZY!

Mon, 07/02/2012 - 16:29 | 2581631 ghostfaceinvestah
ghostfaceinvestah's picture

It sure is nice to be able to print your own currency.

Mon, 07/02/2012 - 16:48 | 2581703 pods
pods's picture

Au Contraire mon frere!

There is no printing until after it is borrowed (with interest) in existence.


Mon, 07/02/2012 - 16:53 | 2581721 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Except in special cases, like TARP, STIMULUS, QE....

QE 2, OT2, POMO....


When the PBoC does a 4T Yuan bailout....

When the BoJ buys ETFs, when the BoI buys AAPL....

Hmmm, maybe monetary policy is no longer so extraordinary?

Mon, 07/02/2012 - 16:56 | 2581735 LawsofPhysics
LawsofPhysics's picture

Can't wait for all that fiat paper to find it's way back into the real economy, could be fun.  But then again, how much of that is simply going to service debt?  Sounds like capital mis-allocation and mal-investment to me.

Mon, 07/02/2012 - 17:31 | 2581847 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Central Bank shit smells like roses.

This is bullish, by the way.

Mon, 07/02/2012 - 17:05 | 2581766 JeffB
JeffB's picture

The Fed can do that by buying Treasuries whenever they want.


Mon, 07/02/2012 - 17:08 | 2581774 pods
pods's picture


And what are treasuries?


Mon, 07/02/2012 - 16:50 | 2581715 Peter Pan
Peter Pan's picture

As they say, luck cannot protect you from stupidity forever. The US is lucky it can still print but deep down we know the US is on borrowed time.

What I have noticed is that people have cried wolf so many times without a collapse having taken place, that a dangerous sense of complacency has set it.

The collapse is however in motion but is not greatly noticeable because the whole world is more or less sinking.

Mon, 07/02/2012 - 17:16 | 2581797 OutLookingIn
OutLookingIn's picture

Its a frame by frame, slow motion train wreck!

Mon, 07/02/2012 - 17:31 | 2581846 Citxmech
Citxmech's picture

Ha ha - this is like a fleet of Titanics all reporting their respective seaworthiness based upon the height of their decks in relation to all the other sinking ships!


Mon, 07/02/2012 - 16:31 | 2581638 Linus2011
Linus2011's picture

"i need some change" that is what social worker obama said.

not "change" as all the americans heard

Mon, 07/02/2012 - 16:42 | 2581677 veyron
veyron's picture

Problem is that there are no african americans in that south park scene.  It was all white people ...

Mon, 07/02/2012 - 16:44 | 2581687 The Swedish Chef
The Swedish Chef's picture

"I want all the change and the notes too" is apparently what he meant...

Mon, 07/02/2012 - 16:59 | 2581745 brewing
brewing's picture

obama - that's all we need is another black guy panhandlin for change...

Mon, 07/02/2012 - 16:31 | 2581640 ArkansasAngie
ArkansasAngie's picture

The only question I have about "the debt" is whether we will surpass the ceiling before or after the election.

But hey ... who cares about the debt when we don't even bother to have national budgets anymore.

Imaginary numbers in the sky only matter to the 1%'ers

Mon, 07/02/2012 - 16:33 | 2581644 Dr. Engali
Dr. Engali's picture

Brother can you spare an aircraft carrier? I'm good for it I promise.

Mon, 07/02/2012 - 16:50 | 2581709 Linus2011
Linus2011's picture


7000 of 'em!

Mon, 07/02/2012 - 16:34 | 2581647 bdiggs77
bdiggs77's picture

Greece was in same position 2 years ago!


Mon, 07/02/2012 - 16:35 | 2581652 Linus2011
Linus2011's picture

looks like you americanos pay in quadrillions at the bakery soon as well.

that is probably why you guys all drive big pick-ups!


Mon, 07/02/2012 - 16:38 | 2581654 falak pema
falak pema's picture

how long can the US continue generating a current account deficit of 3-6% per yr of gDP?

with a debt that is already in the never-never zone; >90% of GDP.

Its asking the world to kick uncle greenback up its obese ass! Exorbitant privilege will get butt bashed, whatever happens in Nov 2012. 

And ALL these PD banks and HFs can think about is to go rob the Euro cupboard! What a cannibalistic world of oligarchs. 

Mon, 07/02/2012 - 16:46 | 2581695 francis_sawyer
francis_sawyer's picture

 "how long can the US continue generating a current account deficit of 3-6% per yr of gDP?"


& the chanting begins... 4 more years!... It's all about 'HOPE & CHANGE dontcha know?

Mon, 07/02/2012 - 17:55 | 2581914 Zymurguy
Zymurguy's picture

Yes!  I HOPE they CHANGE the speed of the printing presses... turn it up to 11


Mon, 07/02/2012 - 18:49 | 2582025 BooMushroom
BooMushroom's picture

Interesting train of thought: what would be the best length of a hyperinflationary collapse, for the muppets to manage to survive it?

Mon, 07/02/2012 - 17:33 | 2581852 dizzyfingers
dizzyfingers's picture

I think it was Wall Street Greek that said debt to GDP is 101.5% "now"...but I didn't look at the date on the article.

When those percentages are figured, is it done by some guv agency like BLS or is it real... well, like if it were on a chart here?

Mon, 07/02/2012 - 16:36 | 2581656 hannah
hannah's picture

if we 'only' has $15bil i will eat my own shit.......

Mon, 07/02/2012 - 16:36 | 2581657 Seasmoke
Seasmoke's picture

good thing we have that retractable roof on the debt ceiling

Mon, 07/02/2012 - 16:38 | 2581664 A Lunatic
A Lunatic's picture

Debt Schmet. What the printing presses won't cover; fear, intimidation, and drone attacks will...........

Mon, 07/02/2012 - 16:41 | 2581671 Euro Monster
Euro Monster's picture

Where is the champagne?

Mon, 07/02/2012 - 16:51 | 2581718 Linus2011
Linus2011's picture

in Frogland!

Mon, 07/02/2012 - 16:41 | 2581672 Endgamer
Endgamer's picture

Our children will be good for it.



Mon, 07/02/2012 - 17:26 | 2581827 Miffed Microbio...
Miffed Microbiologist's picture

This would be a good reason not to have children. Unfortunately too late for me. Ours is going to be an interesting " golden" years. I shudder to think what theirs will be. Frightening times ahead.


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