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October 11 2017

moneymetals

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:

Debt increase september 8, 2017

(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:

Debt increase september 2017

(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.


​Continue to the full article. (Source)​

September 07 2017

moneymetals

Debt Ceiling Capitulation Spells Trouble Ahead for the Dollar

“Frustration” no longer adequately describes what reformers in Congress – along with millions of investors and taxpayers who voted for reform – are feeling. For many, hopelessness is beginning to set in on the prospects for tax, budgetary, and monetary reform following Wednesday’s GOP capitulation on the debt ceiling.

Democrats shamelessly exploited the Hurricane Harvey disaster to couple the $7.85 billion disaster aid package with demands on unrelated issues in the budget. Congress didn’t pay for the bill with offsetting spending cuts, as the Club for Growth and other fiscal conservatives had urged.

U.S. dollar chart - september 6, 2017

Instead, this emergency spending (and more to come) will simply be added to the national credit card.

If there’s any fiscal upshot, it could be for those holding contra-dollar investments such as precious metals. The U.S. Dollar Index has been in a downtrend all year. It may now have impetus to fall further.

Months of legislative failure and inaction have caught up with Republicans. A recent Fox News poll shows that only 15% of voters approve of the job Congress is doing. Now – faced with a disaster in Texas and another one on the way in Florida that could inflict hundreds of billions of dollars more in damage – Republicans are being pushed by circumstances beyond their control.

Their president has all but given up on them. He is, understandably, beyond frustrated with feckless Republican leadership on Capitol Hill.

House Speaker Paul Ryan and Senate spoiler vote John McCain have seemingly devoted more effort to publicly criticizing President Donald Trump’s choices of words than passing GOP legislation.

This week, President Trump foisted the “DACA” immigration issue upon a Congress that doesn’t want to have to deal with it on top of everything else now on their capitulation schedule for the rest of the year.

Trump’s abrupt move left Americans confused as to what he wants Congress to do with President Obama’s illegal DACA amnesty directive. Trump had campaigned against it. Now apparently he wants DACA “legalized” in some form.

Trump Joins with Democrats on Debt Ceiling Extension

Perhaps Trump now sees reaching out to Democrats as his only viable political path forward. On Wednesday, according to Politico, Trump “turned on Republican leaders in Congress when he caved to Democrats’ demands to raise the debt limit and fund the government for three months, setting up a brutal year-end fiscal cliff.”

The three-month extension could give conservatives another shot at attaching reforms to the next funding bill. But so far Republicans have been outmaneuvered at every turn by Democrats and the forces of more spending and more debt.

President Trump’s decisions on Federal Reserve appointments in the months ahead will be critical. They will majorly help determine the outlook for interest rates and the value of the Federal Reserve Note, commonly thought of as the U.S. dollar. 

Continue to the full article: (Original Source)

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