The total federal deficit in 2003 – the deficit for the entire year – under President George W. Bush was $377.6 billion dollars.
On Monday, June 5, — in a single day – the national debt increased by almost that amount, by a total of $359 billion.
Now the US national debt is more than $31.8 trillion. That’s what you could call debt out the wazoo! And there is a lot more where that came from.
What’s going on?
When the debt ceiling of $31.4 trillion was reached and the issue of suspending the debt ceiling was being debated in Washington, a lot of accounting tricks were put to work to keep the bills paid. It’s as those some money was moved from the sock drawer to the underwear drawer, and from the front pocket to the back pocket. Some bills were shuffled to lower-priority positions; they didn’t have to be paid at that moment.
Then on the first business day after President Biden signed the debt bill, the Treasury started borrowing more to pay bills that were stacking up. And the debt jumped by almost $400 billion.
Wolf Richter at WolfStreet.com says, “And that was just the beginning, there will be more hair-raising single-day spikes of the debt over the next few days:
By some estimates, the Fed could issue a flood of Treasury bills, $800 billion to $1 trillion, rattling the markets.
Richter points out that for the first time, “the Fed’s QT [Quantitative Tightening] is happening simultaneously with the refilling of the TGA [the Treasury’s general account] and they’ll both simultaneously for the first time draw liquidity out of the market.
We’re in for some real fiscal turmoil! How is your gold and silver position?
Are you ready?