In an attempt to feed the soaring debt and spending habits of the United States government, the US Treasury is issuing more bonds. But they’ve run into a big problem: no one wants to buy those worthless bonds anymore.
Debt is going to be a big problem for the United States government sooner rather than later. Rising interest rates will eventually push the government’s interest bill higher than that of their military bill (which is astonishing, quite honestly.)
The new debt will be issued in a three-year, 10-year, and 30-year bond supply this week, Reuters reported, quoting US Treasury data. In late September, the Treasury sold a combined $106 billion of debt amid cooling demand from investors. With countries like Japan, China, Russia, and Turkey buying less and selling more US debt, foreign purchases at Treasury auctions have slowed down. Bond dealers have been buying more US debt, but they quickly resell it to make a profit.
There are concerns that US debt is growing out of control. According to RT, America’s debt currently stands at $21.5 trillion, while the Treasury said the US government paid $523 billion in interest in the fiscal year 2018, the highest ever on record. According to the US president Donald Trump’s chief economist Kevin Hassett, the president intends to announce a policy aimed at tackling the debt. “The deficit is absolutely higher than anyone would like. As you watch our next budget come out – and you’ll start to see things in the next few weeks – then you’ll see a much more aggressive stance” in tackling it, he said, as quoted by Bloomberg. But no one is holding their breath.
Global debt, both that held by governments and private citizens, has grown seemingly out of control. There is no way all of the debt accrued on Earth could ever be paid back.
Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak. There is more than enough economic data out there to show there could be an economic collapse and stock market crash in 2018. Bill Gross stated in 2017 that “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road”. One wrong move and the whole thing could blow sky high, wrote the Epic Economist. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen. –SHTFPlan
Last week’s data shows that the US budget deficit soared to an estimated $782 billion in Donald Trump’s first full fiscal year as president. This is the largest fiscal deficit for the US since 2012 when Barack Obama was on a spending a spree.
One way or another, up front or by disguise, QE money will be used to keep the fantasy going. Maybe a foreign nation will be given the money and they buy the bonds in a crude “slight of hand” that even Ray Charles can see. Regardless its difficult to think such a charade can continue indefinitely.
Maybe a foreign nation will be given the money and they buy the bonds in a crude “slight of hand” that even Ray Charles can see.
Kinda like the Clinton Foundation. It was illegal for foreign government and agents to donate directly to the Clinton Foundation, so they all donated it to the Canadian version of the Clinton Foundation who then in turn sent it to the US Clinton Foundation.
Money laundering at it’s finest.
Collapse won’t happen because we will just print more money.
Inflation will happen though.
US Treasuries – Junk Bond Status. However the fraudsters will rate US Treasuries as AAA status until it collapses and then the thieves will be long gone on their yachts parked off the shores of New Zealand with their cargo of strippers and children they molest, laughing it up.
Give us their addresses, I’m sure when TSHTF we would love to pay them a visit…
“In an attempt to feed the soaring debt and spending habits of the United States government, the US Treasury is issuing more bonds. But they’ve run into a big problem: no one wants to buy those worthless bonds anymore.
Debt is going to be a big problem for the United States government sooner rather than later. ”
NOT TRUE. I HAVE A FRANKLIN THAT SAYS ALL OF THE BONDS THAT THE FED ISSUES WILL BE SOLD. ANY TAKERS ???
Government debt is not a problem now, nor will it be a problem anytime soon. I pointed out just last week that the US debt to GDP Ratio was about 110%. This is well within historical norms.
I also pointed out that China’s debt to GDP Ratio was now 250% and that TARIFFS will suppress demand as Chinese exports increase in price. That’s CLASSIC ECONOMIC …. ELASTICITY …. between price and demand.
As China’s exports to the USA crash next year without a new Reciprocal Trade Agreement, the Chinese economy begins to unravel with new vigor: production declines, layoffs & bankruptcies soar as inventories climb, and NPL skyrocket endangering the entire Chinese Banking & Financial Industry as the corruption endemic to the underlying economic activity is laid bare.
As the Chinese economy tanks, the Chinese debt to GDP Ratio now at 250% explodes way over 300%. Additionally the Chinese Yuan has lost almost 10% of its value since the TARIFFS have begun.
BTW (TSB) if the Yuan were backed by gold it would be the most valuable currency in the world and it would not be losing so much value so quickly.
Can you say “CONFETTI” My Peeps ??? 🙂
Read Vic Sperandeo’s artice on http://www.theepochtimes.com on the “Gambino”
When the US Treasury can longer sell debt, it just changes the rules. If you know how to play Gambino, it is no problem at all.
Big Commercial Banks, in a sort of reverse bailout from 2008, can buy US Treasuries with no limits, no requirements for mark to market valuation on their balance sheet even if these Bonds drop in value if interest rates go up, no requirement for any “reserves” against which to “buy” these, a guaranteed 3% yield, and probably not mentioned is these Commercial Banks can pledge these “assets” to make loans on a fractional reserve 10 to 1 ratio, continue to make loans to overleveraged corporations to keep their stock prices buoyed as CEOs and trading desks acquire and concentrate ownership of stock and thus corporations, until the Banks own it all.
How can I buy some of these treasury bonds?
If they sell me a 10 year 2%. I will pay one dollar?
I buy Tbills, they pay better than CD’s and states can’t tax your interest income. I’m too old to buy Tbonds. Interest rates are set by auction. People will buy these instruments. Most our debt is owed to Americans. Meaning the people that are going to get “Stiffed” are Americans. To be exact most the people that will get stiffed are the Democrats that voted for all that debt. So what if we can’t pay it all back? I really don’t give a darn for any Democrats life.
Last time I sent $100 to Tbill, i got some crack in return…..
Republicans don’t understand fiscal responsibility either. Once money creation went fiat in August 1971 it was all inevitable.
Failure to understand that Republicans are enemies of liberty is to have missed the whole lesson of America’s slide into tyranny.
Roger sounds like a PO’d democrap still drinking the Hillary tea.
Its the deep state that runs the House economic casino table. And they play both sides of the bi-political equation.
TSB, Roger is NOT INCORRECT. He just left out one part of that statement. The complete statement is as follows: “Failure to understand that Republicans AND DEMOCRATS (the two-party system)are enemies of liberty is to have missed the whole lesson of America’s slide into tyranny.”
The Exchange Stabilization Fund will buy them.
The US has of yet never had a “failed” bond auction.
Someone has always bought, even when no one bought.
Dark money from hidden identities buying our debt will not end well.
When Obama started the quantitative easing Germany refused to do it too.
Germany had learned the lessons of hyper inflation and what fallowed. They were more than willing to accept a depression to avoid hyper inflation.
The US has never experienced hyper inflation, so they have never learned the needed lessons.
We don’t experience hyperinflation because we have all the resources to provide for our population. We really don’t have to import anything.
I have to respectfully disagree. We have successfully exported inflation or at least hyperinflation because oil has been dollar based. Excess dollars have been able to be literally shipped overseas to settle oil and dollar based debts amongst nations. We really don’t want those dollars back or the local number of dollars increase in the US and as more Dolle chase the same goods, prices will rise. Then factor in another 21 trillion+ of dollars gone missing, found by (Catherine Austin Fitts started to uncover) Dr Mark Skidmore as accounting adjustments in the DOD and HUD (2 agencies only). Fitts estimates it can easily be 50 trillion out there unaccounted for.
When everyone wants out of dollars, we’ll be the only game in town because we own them.
Since our money is all fake, they can use our dollars to wipe their butts. We don’t have to accept it back.
I’m curious who is stupid enough to trust the Euro, the Yuan, or the rubble?
Our money is no more fake than any other money in the world.
They’re all fiat and float in value against each other.
There are many currencies more “fake” that our own fiat. Try the Russian Rouble, or the Indian Rupee as great examples outside of South America or the Mexican Peso. Once upon a time, and not that long ago, the Indian Rupee was 44 to the dollar. Now its 75 to 1. There’s a longshot if every there was one.
Which may be why there is more poo in the Streets of India than San Francisco. 🙂
“The Exchange Stabilization Fund” !!!???
You mean – The Government? So the government is going to buy the Tbills or Tbonds so that it can say that they didn’t go unsold?
NO. THAT IS NOT HOW IT WORKS.
The government does not buy its own bonds unless it intends to redeem a particular issue from the market as it has in recent years to refinance the National Debt at zero (or lower) rates; not unlike we would refinance our mortgages to get a lower rate. 🙂
You make some excellent points about the ESF. They can go in and buy whatever Treasuries don’t sell, so it makes the auction look a lot better than what it really was. ESF is the 800 pound gorilla in the room.
Your point about the petro-dollar and the artificial overseas demand for dollars has been something I’ve posted about in the past, and is probably my number one concern every single day. And I think it relates directly to the two silver vaults sitting in the basement of the JPM building.
One qualification I would make is that our inflation has not entire been exported overseas. Oil priced in dollars makes our petroleum based products a lot cheaper than the rest of the world, but look at the price of a house or a college degree that’s only good for a job as a coffee jockey. Or the stock market. There’s plenty of inflation state-side, and we’ve parked it in other places so it doesn’t show up in places where even the most brain-dead of sheeple would be able to figure out that something is wrong with the picture.
Then there’s the lavish welfare state that artificial demand for dollars creates. From social security to food stamps to child support and alimony, this is all welfare and it would exist to a significantly lesser degree without an artificial demand for dollars. When did welfare like child support and alimony become very politically fashionable and correct? When the dollar became the global reserve currency.
Now back to economics of substance. Look at the next seven countries in line behind China and Japan as holders of dollars. Ireland is #3, Brazil is #4. Rounding out the list are City of London, Switzerland, Cayman Islands, Luxembourg and Hong Kong. All are tax havens with the exception of Brazil, which is the world’s #1 exporter of beef, orange juice concentrate, soybeans, coffee and cocoa (all commodities).
Why is Ireland #3? The country is very generous to businessmen who go there to set up subsidiaries. Every major company on the planet that does business outside its own borders has a subsidiary in Ireland. Taxation is an absolute bare minimum, and not one dime more, which is why none of them repatriate funds out of Ireland. Every one of them receives payments for their goods and services in dollars. Treasuries are the trade settlement paper that proxies for those dollars. This means Ireland is effectively the world’s largest parking lot for Treasuries.
Brazil sells commodities, and every one of those commodities contracts must be settled in dollars. Again, Treasuries are the trade settlement paper that proxy for dollars, and make everything good for delivery.
Where do JPM’s silver vaults come in? What happens when the Next Seven no longer need to hold dollars as trade settlement paper? They’re going to be looking to unload them, and they’re going to want something of value in return. Enter silver. When those Treasuries get bounced back to the US, JPM is going to be the clearing bank that settles them in silver. WolfStreet has a good article on this topic, complete with value of holdings.
Based on the value of the Next Seven’s Treasury holdings, and the amount of silver in JPM’s largest vault (750-800m troy ounces), in order for the ESF to settle in full on the Next Seven’s Treasury holdings, the price of silver would need to go to approximately $2000 per troy ounce (settlement at this price level would consume all the silver in JPM’s ESF vault).
I’ll buy them if they mature in 7 days. Anything beyond that is high risk.
I was Laffin at Kanye west today. I never seen a black person try to sell a president to black people like this. kanye really put himself out there. thought he was gonna eat trumps shit. It was all for nothing cus blacks are so racist that they will always hate trump. Trying to selll blacks on jobs is a waste of time. They don’t want to work they want free shit. It was a joke.
Smart blacks with a few brain cells realize they been played by the democrats for their votes for decades.
Beware of blacks bearing gifts.
He was trying to get Trump to pardon former Gangster Disciples leader Larry Hoover.
Many people think if he reappeared on the South Side of Chicago the beefs would be
squashed and the murder rate would plummet. Ain’t gonna happen.
Jesus couldn’t save Chicago now.
If you like to pay cash for things, ask Santa for a wheelbarrow this Christmas. That’s to carry the cash in;get a small handbag for carrying what you’ve bought. That’s hyperinflation.
If you were buying a 10-year Treasury, you would have to ask yourself what the next 10-years will look like; not just how things will be in 2028.
There will be three more presidential elections by 2028. Think you can keep the Progressive Socialist Democrats from getting back in power? What will the debt look like by 2028? Will the fully-supported illegal immigration crisis still be packing infinite population into a finite country? Where will AI be in 2028? The Baby Boomers will be in their 70s and 80s in 2028. What will that look like? Think the stock market will even be around in 2028? MSM? And on and on. How is that 10-year Treasury looking now?
Two year bonds are spiking higher. 🙂
Nobody wants Satan’s Toilet paper anymore?????
First off people ….. how can a nation be in Debt to itself. The whole Federal Reserve is a foreign corporation and illegal and we actually owe it NOTHING! TIME to end it and bring back our Constitution.
There you go. If push comes to shove the Gangster Banksters at the FED will take it in the shorts and Americans will be debt free …. are debt free. 🙂
The Internet will be shutdown tomorrow, they claim it will be for a security update.
I see a Trojan Horse.
Be careful, I suspect Google may be deploying their China spyware upgrade worldwide. It’s like skynet.
Be ready for the big silence. It will come one day, perhaps even tomorrow.
Are you serious or did you forget the brackets ?
that’s all it would take for the SHTF. shut down the internet and the phones, bingo, no communications at all. no credit cards, banks, only cash will work. if you don’t have a stash, you won’t be able to get it. now that they have everyone’s phone connected, via the “national alert system”, it is a switch away.
Dan Bongino is right about Clinton-Soros failed Coup against Trump. The silence on this matter is disturbing. enjoy https://www.youtube.com/user/DanBongino
Why would LSM report on its own wrong doing. LSM is NOT independent. It is the Propaganda Ministry of the New World Order. 🙁
when people scream about hyperinflation coming to america they dont understand one simple fact. it can only occur in a socalist country whereby the state sets the wage to match inflation , its called indexing. indexing does not occur in the us, wages havent risen in 40 years, what you will see is stagflation, whereby the inflation rate will rise until businesses will go belly up sears is a good example!
There’s interest, there’s compounding interest, and, then, there’s interest, taking up more than vital survival needs.
All of it is a con, a racket, a Ponzi that would make that Madoff buffoon look like a genuine boy scout of sorts…