The US Just Borrowed $488 Billion In One Quarter, The Most Since The Financial Crisis

For months, analysts have been warning that the US is set to borrow an unprecedented - for a non-recessionary period - amount of money...

... and on Monday afternoon this was confirmed, when the US Treasury announced that in the quarter ended March 31 (the fiscal year's second), the US borrowed $47BN more than its had anticipated three months ago, or $488BN to be precise.

This was the single biggest quarterly amount of debt sold by the US Treasury since the record $569BN in debt borrowed in Q4 2008 when the financial system nearly collapsed, and Treasury had no choice but to raise a gargantuan amount of money during the biggest financial crisis in modern US history.

What makes the just passed quarter different, however, is that there was no crisis, not even a recession. In fact, in the first quarter US GDP rose by 2.3% according to the BEA amid what, until recently, the "experts" said was a global coordinated recovery.

In retrospect, it appears the "recovery" was only around long enough for the US and/or China to raise near record amounts of debt.

As a result of the near-record borrowing spree, the US ended the quarter with $290BN in cash, more than the $210BN budgeted.

What is scary is how fast the US is raking up the debt: as a reminder, just a few weeks ago we reported that in the first six months of the fiscal year, the US budget deficit rose to $600 billion as spending increased at three times the pace of revenue growth in the October-to-March period. At that run-rate, the US deficit will soar to $1.2 trillion for fiscal 2018, far above the $804BN projected budget gap and resulting in an even greater amount of debt borrowed.

Commenting on the debt splurge, the Treasury said tax changes are “poised to underpin near-term consumption and investment” and “the stage is set for a pick-up in growth over the near term."

They better, because if all we have to show for nearly a half a trillion in debt in one quarter is 2.3% GDP, then the US is in very serious trouble.

Looking ahead, the Treasury forecast a need to issue $75BN in net marketable debt in the current quarter, $101BN below the last forecast, and assumes the cash balance continues to rise by the end of June to $360 billion, the TSY said. The April-June borrowing estimate is $101 billion less than its previous forecast, which was partly driven by the higher cash flows.

As for the last quarter fo the fiscal year (calendar Q3), the Treasury plans to borrow a net $273 billion, assuming a cash balance of $350 billion by the end of that period.

It is safe to assume that the Treasury will be well "over" all its borrowing estimates.

 

 

Comments

ParkAveFlasher BaBaBouy Mon, 04/30/2018 - 16:58 Permalink

Hey guys, this is great.  All the QE without all the selloff drama.  Algos simply spoof the market up and down, reallocating price as needed, day by day.  You can slow-phase a selloff over 8 or 9 months, no one would be the wiser.

Just btfd!  Oh, happy day!

In reply to by BaBaBouy

GUS100CORRINA BullyBearish Mon, 04/30/2018 - 17:24 Permalink

QueenDratpmurt .... 

I guess you are an expert on DEBT, correct?? NOT!!!!

Remember, when President TRUMP entered office, America was already PAST 20 TRILLION DOLLAR MARK!!! New issuances increase is due to increase in need for funding to cover reimbursement increase due to short term debt debacle created by "Obozo" and BUSH. 

USE OF THE TERM "TRUMPTARD" IS REALLY ANNOYING AND OFFENSIVE ASSWIPE!! 

In reply to by BullyBearish

Escrava Isaura Four Star Mon, 04/30/2018 - 19:10 Permalink

Isn’t Trump the king of debt?

Isn’t Trump a man that lives of rent? His wealth is mostly leverage because Trump produces nothing.

Isn’t Trump business that caters to the ‘deep-state’ wealth?

With such track record what did the conservative expect from Trump?

Deflation?

Are you f#ck!ng kidding?

 

In reply to by Four Star

highly debtful Escrava Isaura Tue, 05/01/2018 - 04:20 Permalink

No arguments here. But they're all following the same disastrous logic now. Financing everything with debt has become like treading an iced-up lake wondering whether it will hold every step of the way and growing increasingly confident when nothing seems to happen. See? It's all good. Told you so, didn't I?

Murphy's law dicates that the first cracks only appear when you're near the middle of that lake.  

In reply to by Escrava Isaura

junction QueenDratpmurt Mon, 04/30/2018 - 16:57 Permalink

That amount is what the government feels it is safe to release to the public.  The actual amount of the shortfall is probably triple that.  Nobody in the know will jeopardize their jobs (and maybe lives) by revealing the truth.  Gordon Duff at Veterans Today is now implying that Trump is a closet Jew and a bisexual.  What happened to the good old days when JFK was busy scoring actresses while trying to shut down the Federal Reserve?  Long gone in the rear view mirror. 

In reply to by QueenDratpmurt

Xredsx QueenDratpmurt Mon, 04/30/2018 - 17:20 Permalink

One simple fact, every citizen is responsible for this debt. You will have to pay for it one way or the other. Your own taxation is what is being used to control your own enslavement.

Question? Due to the fact that your ancestors fought and died to leave family over taxation. Was income tax forbidden on the American common people by the US Constitution?

Now let's discuss different perceptions.

Are the words "Constitution or Treaty" just a different word for CONTRACT?

What would be class as a breach of contract?

 

In reply to by QueenDratpmurt

Hulk Mon, 04/30/2018 - 16:50 Permalink

Hey, moving your fleet around the world and launching 100 cruise missiles on completely fabricated evidence dont come cheap...

JohninMK Hulk Mon, 04/30/2018 - 17:47 Permalink

Sure doesn't, a co-incidental 100 :)

April 30 (UPI) -- Raytheon has been awarded a contract from the U.S. Navy for Tomahawk cruise missiles. The contract, announced Friday by the Department of Defense, is valued at more than $143.2 million under the terms of a firm-fixed-price contract, which is a modification to a previous award.

The deal, from Naval Air Systems Command, enables the company to provide 100 full-rate production Lot 15 Tomahawk Block IV all-up-round vertical launch system missiles, the Pentagon said.

In reply to by Hulk

NVTRIC Mon, 04/30/2018 - 16:55 Permalink

I bought some US debt.  Figured I'm in the fucking game anyway, might as well have a stake in it.  When babies get their heads crushed by soldier boots, I want to know I participated in some meaningful way.

 

America.

 

Fuck yeah.

mailll Mon, 04/30/2018 - 16:58 Permalink

They have to grab all they can before they get caught.  And besides, we still owe ISIS back pay. Beside, who cares, it's only free printed money and the fed can do this forever until they decide not to in order to fulfill an agenda.  With the fed, the US govt. doesn't need to collect taxes, the fed can just print it for us.  As they print, our economy expands.  When they decide not to print anymore, the economy contracts as it did during the 1930's. The only concern would be inflation if they print too much money and buy our bonds with it,  and that is not a huge issue right now.  Of course it is causing an inflated stock market, and that is probably where a lot of the money is going, when they aren't paying off mercenaries.

Friedrich not Salma Mon, 04/30/2018 - 16:59 Permalink

Katherine Austin Fitts found that $21 trillion (not the $21 trillion that is our debt) was pilfered by DoD. That would imply the FED and .gov can print unaccounted at will so this $488 billion number is for us sheep to see. It is a statement by someone.

dirty fingernails Mon, 04/30/2018 - 16:59 Permalink

This is all part of the unfathomable genius global domination strategy. It might look like a drunk ricocheting down a narrow street screaming obscenities and begging for a fight, but honest it's genius. So genius, NOBODY but the devout faithful can grasp more than the barest silhouette of an idea before the picture shifts to the squirrel-of-the-day. It's like herding cats.

Only a graduate of Trump University and a daily eater of Trump Steaks can grasp the greatness.

adr Mon, 04/30/2018 - 17:01 Permalink

In the past four years I have seen white areas go nearly 100% Hispanic. They are all getting paid by the US government, legal immigrants or not.

That is where the cash is going for a reason.

Only a strong white nation can stand against the global takeover by the dual citizens and they know it. So they are destroying every white nation they can.

We are in the endgame. Some have awoken, but not enough. Usually it isn't until the end when you realize you have truly lost. By then it is too late. When the score was 40 to 1 in the second inning, you should have woken up. Not in the bottom of the ninth with two outs.

LawsofPhysics Mon, 04/30/2018 - 17:06 Permalink

So what?  The People's Bank of China has printed far more Yuan for their own people!  Oh wait, we let a private bank create all the money they want with no real work and no real risk and then we let them charge us interest while we must perform real work and face real risk to pay their interest AND principal!!!!

 

Well that confirms it, either 'mericans really are idiots or they enjoy slavery.

Audit and end the damn fed already! In the meantime...

"Full Faith and Credit"

same as it ever was!

tangent Mon, 04/30/2018 - 17:17 Permalink

Trump signed the budget, making him as the Democrats say, just an idiot. You really have to hate BOTH the United States and the people enslaved within its borders to enable this debt slavery. Taxation is already extortion as it is... now we have Trump ensuring our children grow up to be twice the slaves we are now.

LawsofPhysics Batman11 Mon, 04/30/2018 - 17:30 Permalink

Something is wrong with your chart.  How can debt and credit uncouple as your chart suggests.  I call bullshit, what someone goes in debt, someone is giving them credit, period. If this isn't the case then then you know damn well the system is rigged.  The source of the "credit" matters you stupid fuck. Tell you what, let me create "credit" or money or whatever the fuck you want to call it out of thin fucking air with no real risk and no real work and someday I too will own the fucking world.

For fuck's sake, this isn't that complicated. Fraud, "hidden" in plain sight.

In reply to by Batman11