STUNNING U.S. GOVERNMENT DEBT INCREASE IN PAST FEW DAYS…. While No One Noticed

As the stock market continues to rise on the back of some of the worst geopolitical, financial, and domestic news, the U.S. Treasury has been quietly increasing the amount of government debt, with virtually no coverage by the Mainstream or Alternative Media.  So, how much has the U.S. debt increased in the past few days?   A bunch.

The surge in U.S. debt that took place over the past two days all started when the debt ceiling limit was officially allowed to increase on Sept 8th.  In just one day, the U.S. Treasury increased the public debt by $318 billion:

(chart courtesy of TreasuryDirect.gov)

The was the first time in U.S. history that the public debt rose over $20 trillion.  I mentioned this in my article, The U.S. Government Massive ONE-DAY Debt Increase Impact On Interest Expense & Silver ETF:

The U.S. Treasury will have to pay out an additional $7 billion interest payment for the extra $318 billion in debt it increased in just one day.  Again, that $7 billion interest payment is based on an average 2.2% rate multiplied by the $318 billion in debt.  Now, if we compare the additional $7 billion of U.S. interest expense to the total value of the silver SLV ETF of $5.8 billion, we can plainly see that printing money, and increasing debt becomes a valuable tool for Central Banks to cap the silver price.

Thus, when the U.S. Treasury increased the public debt by $318 billion, it will also have to pay an additional $7 billion in an annual interest payment to finance that debt.  However, that large one-day debt increase was over three weeks ago.  What’s been going on at the U.S. Treasury since then?  Let’s just say; they have been very busy… LOL.

On the last update in September, the U.S. Treasury increased the debt by nearly $40 billion on the very last day of the month:

(chart courtesy of TreasuryDirect.gov)

As we can see, the U.S. public debt increased from $20,203 billion ($20.203 trillion) on Sept. 28th to $20,245 billion on Sept 29th.  Overall, the U.S. debt increased $83 billion more since the $318 billion one-day increase on Sept 8th.   Which means, the total debt increase was $400 billion in a little more than three weeks.  However, the U.S. Government must be making up for lost time when the debt ceiling was frozen from March 15th to Sept 7th.

According to TreasuryDirect.gov website, the U.S. public debt ballooned by another $100 billion in the first two days of October:

(chart courtesy of TreasuryDirect.gov)

Alright, it only increased by $99 billion from $20,445 billion to $20,344 billion, but I’d rather use $100 billion because it has a better ring to it.  So, in less than a month, the U.S. Government public debt increased by a stunning $500 billion.  Along with the half trillion Dollars worth of new public debt, the U.S. Treasury will have to pay an additional $11 billion a year in interest payments based on an average 2.2% rate.

The notion that the Fed will continue to increase interest rates and begin to liquidate its inventory of MBS – Mortgaged Backed Securities that no one wanted in 2009-2010, as well as some of its high-quality Treasury toilet paper, is pure bollocks when they are handing out money hand over fist.  As I mentioned in my article linked above, if the interest rate went back to the 6.4% rate as it was in 2000, the U.S. Treasury interest on the debt would surge to more than $1.3 trillion.

Thus, our annual interest payment of $1.3 trillion (based on a 6.4% average interest rate) would account for one-third of the $3.9 trillion 2016 budget.  Of course, this could not fly as our annual deficit would jump from $587 billion (2016) to $1.4 trillion.  Actually, I believe we are going to see a $1+ trillion annual deficits in the next several years.

It is impressive to see how quickly the U.S. Treasury is increasing the public debt:

Again, this additional $182 debt increase comes after the $318 billion one-day increase on Sept 8th.  No wonder, China and Russia are working together on alternative Gold-Backed Yuan Oil trading benchmark as highlighted in the article, A Failing Empire, Part 2: De-Dollarisation – China and Russia’s Plan From Petroyuan To Gold:

For China, Iran, and Russia, as well as other countries, de-dollarization has become a pressing issue.

The number of countries that are beginning to see the benefits of a decentralized system, as opposed to the US dollar system, is increasing.

  1. Iran and India, but also Iran and Russia, have often traded hydrocarbons in exchange for primary goods, thereby bypassing American sanctions.
  2. Likewise, China’s economic power has allowed it to open a 10-billion-euro line of credit to Iran to circumvent recent sanctions.
  3. Even the DPRK seems to use cryptocurrencies like bitcoin to buy oil from China and bypass US sanctions.
  4. Venezuela (with the largest oil reserves in the world) has just started a historic move to completely renounce selling oil in dollars, and has announced that it will start receiving money in a basket of currencies without US dollars. (This is not to mention the biggest change to have occurred in the last 40 years).
  5. Beijing will buy gas and oil from Russia by paying in yuan, with Moscow being able to convert yuan into gold immediately thanks to the Shanghai International Energy Exchange.

As the U.S. Treasury and Federal Government continues printing money and increasing its debt by $500 billion at a clip, the rest of the world is no longer going to sit around and wait for the negative ramifications.

Lastly, I have one more interesting chart to share before I conclude this article.  I find it quite ironic (HILARIOUS) that the gold and silver price PEAKED on the very same day the debt ceiling was increased and another $318 billion of debt was added to the U.S. Govt balance sheet while the Dow Jones Index bottomed and surged by 1,000+ points:

I gather this chart wraps up the situation nicely.  As the U.S. Govt pumps up the market with another $500 billion in debt, the stock market continues to move into BUBBLE TERRITORY.  Unfortunately, precious metals investors have to be patient until the Fed and U.S. Treasury completely BLOW UP the market.

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34 Comments on "STUNNING U.S. GOVERNMENT DEBT INCREASE IN PAST FEW DAYS…. While No One Noticed"

  1. People are not responding to dangers if you increase the preassure slowly.
    This reminds me of the US-Armys “lost” 2.3 TRILLION .. witch hiked to nearly 7 TRILLION Dollars.
    The first time they put the bad news one day before 9/11 so everybody forgets about it . . . . and now it’s just backgroundnoise if trillions go into corrupt pockets and illegal operations.

    P.S. NOW I would buy into silver. I think the price will bounce of the 17,50 mark but then go up like a Rocket. I think february is the time you have to look for the ultimate rise of silver.

  2. “Unfortunately, precious metals investors have to be patient until the Fed and U.S. Treasury completely BLOW UP the market.”

    LOL I’ve been waiting since 2013…..A much better choice is to; 1. Keep your physical metals and keep stacking more 2. Dump most of those bow wow PM stocks and 3. Take that PM Stock money and invest into the crypto sector.

    Believe me, “waiting for the metals to move” is a fools choices. Stack Gold and Silver and forget about them. Waiting for Rip Van Winkle to wake up could take a while…..

    • Spot on assessment,GLP.And I could not agree more with your strategy, bud.

      I’ve been saying it for years, AU/AG are range bound and absolutely will not move until this dollar paradigm implodes in on itself.Consider this: In 2014, more gold futures contracts were sold than ALL THE GOLD EVER MINED.

      Front run the obvious crypto bubbles(even though block chain technology is the future), stay in cash, buy gold and silver and forget about it. I think the masquarade of this debt laden prosperity will be exposed by 2020.

      • I’ve been loving this range-bound pm market!…makes cash flowing the paper market & reinvesting the proceeds into physical so much fun! Far as I’m concerned the metals market can keep doing this forever!

  3. The rate at which corporate defaults are occurring is key.
    There were 150 major global corporations that defaulted in 2016, that is 40% more than the previous year 2015.
    Of those 150 corporations, 75% are domiciled in the US, with 50 being in the oil and gas sectors. Excess speculation in the oil & gas, tech sectors by the use of leverage, will eventually have to be paid for. This is going to require a large amount of debt to be written off.
    Professional money managers are holding a record pile of crap within portfolios, at an historic high of 35.8% in corporate bonds. There is 54% of loans in the oil & gas sectors that are trading at less than 70% par.
    The big problem with these corporate bonds is they are mostly (crap) junk bonds. A good example of these are the P.I.K. bonds. Payment In Kind – sold at arms length they allow interest payment deferrals and coupon payments to be “made in kind” with the issuance of even more bonds! Paying debt payments with more debt.
    The first law of economics is; All Debt Will Be Paid.
    Either with dollars worth pennies, or with pennies worth dollars. It will be paid.

  4. The price of food, smokes, and alcohol just jumped big in NC… within this same time period. There is a lot of coordination involved here. They are trying to inflate the debt away… but that is just pissing into the wind. Buy and hold physical gold and silver… then just be patient until the SHTF.

  5. Can I sum up the article? US is toast!

  6. The childish antics of our government (govern=control, ment=mind): irresponsible spending, no self control, the law is now outlaw, evil is good, good is evil, they act like liberal celebrities, hypocrites.

  7. 1/2 Trillion dollars (500 billion) of debt in less than a month. It appears that the rate of accumulating debt is accelerating out of control. At this rate, if it remains constant, the government will now be adding 6 Trillion dollars a year to the debt. Is not this huge increase in the debt a sign of an impending dollar crash / hyperinflation? Surely this Ponzi scheme can not continue on much longer?

    • Keep in mind tax season was 6 months ago, so all the income from that is used up. Debt since Reagan has been doubling roughly every 8 years. Trump may be on track to beat that score; we’ll know in a year or two.
      Either way, debt:GDP is upside down & any additional debt will only drag on growth, so low rates are baked in. Dollar is toast & any linked currencies are in for a heck of a ride.

  8. GLP, you just repeated what the author said.

  9. Staying focus on what usa needs. Lets get it done safety and on time!

  10. Currency reset

  11. The US Govt collects about $1.5 trillion from private individual tax payers….I bet they wouldn’t like to know that most of this taxation of their hard work goes to interest payments…..no roads, schools, hospitals etc…..just interest!

  12. Thanks Steve, regards

  13. Thanks Steve. Also, S.A.’s Total Reserves are falling fast again. https://fred.stlouisfed.org/series/TRESEGSAM194N

  14. robert sinclair | October 6, 2017 at 1:40 am | Reply

    A dollar= .886 euros, so if venezuala or china, sells or buys using euros, its the virtually same as using dollars and its not de-dollarising. Chinas dollar reserve are going up and are preject to go high in december. So how can you account for this?

  15. Is this Shanghai International Energy Exchange already open for business?

  16. The wrong people are at the controls. That’s the problem. And until they’re removed things won’t change. The world will keep edging towards economic Armageddon.

  17. Private profit = public debt. For private profit to continue upwards, so must public debt.

    Yes, government debt will increase to infinity. That’s the way our system works. And when the times come, they will either hyperinflate or default. All Treasury holders will be shafted.

    Yes, the system is a ponzi scheme. How does this work? Because men desire money and power, and women desire men with money and power. Ordinary, honest men and women are left out. Always have been.

    Did you guys think you were in charge, and did you think you were going to design a better system for humanity, for the working people?? Laughing my head off!

  18. Wating for Russian Chineese coordinated gold backing currency announcement.

  19. Because of corporates, especially bankers, run the world; we are heading to the breakdown of human civilization. A new social, political, and financial system is needed. I am the author of Hanomy Manifesto which can be downloaded/reviewed/shared at Hanomy.com It’s free and I have no affiliation with anyone. It’s something I consider as a gift to the world. Hanomy is a new social, financial, and political system for the whole world. This 112 pages document (current working on 2nd edition and FAQs section …coming slowly). It outlines new social, financial, and political system for the entire world. Numbers work and it can be implemented in just a few short years AFTER the mass population DEMAND it worldwide. I believe that once the mass understand and hear of the message in Hanomy, they will push for it. It has solutions for major problems we have today and in the future. Budgets of 50 years for each country (of GDP over $100 billion) are available. I don’t have a budget to promote this at all as I don’t have financial to do so. I hope Hanomy will get to the right eyes and ears … then we can start the grassroot process … worldwide scale. Collaboration is welcome and encourage. Please help me spread the word. Highlights of Hanomy:

    • Fundamental human needs met throughout life’s existence
    • Basic human rights observed everywhere
    • Sovereign debts worldwide are settled and eliminated
    • Upheld liberty and freedom
    • Financial contributions drawn from a portion of idle/unutilized money
    • No taxes on income, profit or spending
    • Interest charges and usury practices abolished
    • Power of money creation where it belongs – the people
    • An end to the fractional reserve system
    • Upheld free market principles (true capitalism but with social responsibility)
    • Decreased or dissolved inflation and hyperinflation
    • Reduced income inequality
    • An end to corporate welfare
    • Advanced technology benefiting humanity
    • Freedom of time for quality of life and caregiving
    • Prohibited conditions for authoritarianism
    • Preserved sovereignty and respected borders
    • An end to “modern day slavery” (this includes you)
    • Improved care of the environment and world resources
    • A world we’re proud to claim and pass along

    • “Basic human rights observed everywhere”

      Observed, yeah, right. Forget it dude. You’ll eat your neighbors dog when the time comes.

  20. We are in what some term the 7th Biblical dispensation. This dispensation of grace as with the previous dispensations are simply periods when God gives man the chance to govern himself. Man simply cannot do it under any system because man is imperfect.

  21. Slithereen Guard | October 8, 2017 at 12:23 pm | Reply

    Question is with such huge printing, where is the inflation.

  22. “Regrettably, the alignment of data trends with the LTG dynamics indicates that the early stages of collapse could occur within a decade, or might even be underway.This suggests, from a rational risk- based perspective, that we have squandered the past decades, and that preparing for a collapsing global system could be even more important than trying to avoid collapse.”

    http://sustainable.unimelb.edu.au/sites/default/files/docs/MSSI-ResearchPaper-4_Turner_2014.pdf

  23. “And the second beast required all people small and great, rich and poor, free and slave, to receive a mark on their right hand or on their forehead, a1so that no one could buy or sell unless he had the mark, the name of the beast or the number of his name. Here is a call for wisdom: Let the one who has insight calculate the number of the beast, for it is the number of a man, and that number is six hundred sixty-six.” Revelation 13:16-18

  24. Is it true that the biggest debt the US Government has is , is to the Fed. About
    $7 Trillion ? And the Biggest Bank in the Fed is Rothschilds ?

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