Where is the money? (transaction, debt, borrowing, interest)
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“June Deficit Fails To Account For $142 Billion In Excess June Borrowings; U.S. Has Issued $1.5 Trillion Excess Debt Over Budget In Past 4 Years
As we reported earlier, the June US budget deficit came in around as expected, at $68.4 billion. Yet an interesting observation that we have touched upon previously, is that over the same period, the US borrowed a whopping total of $210.9 billion. Once again, as has been the case over the past four years, the US borrowed far more in any deficit month, then it needed simply to close the deficit. Case in point, the June differential was $142.5 billion more borrowed than "needed", the YTD (fiscal) differential is $290 billion, and the cumulative differential since the beginning of the 2007 Fiscal year (October 2006), is a whopping $1.5 trillion. Over the past 3 years and 9 months, the US has accumulated an incremental $4.7 trillion in new debt, even as the budget deficit has grown by "only" $3.2 trillion. One wonders just what the reason for this differentialis, which amounts to half the cumulative budget deficit over the same time period? The cumulative data, as well as the stunning differential between the two time series is presented on the attached chart.”
Maybe they're hoarding for some future reason ?
Maybe they know that future Treasury sales won't bring in what we need ?
Maybe they're sending $$$ to the IMF to prop up Europe ?
Who really knows..there's so much "out there" where money could be going.
No one has a theory why we are borrowing more than we need?
Hi hilgi,
Guberment debt is money. The guberment does not borrow until it the Fed sells bonds. Since we are teetering on a depressed currency, they are not doing that.
Guberment debt is money. The guberment does not borrow until it the Fed sells bonds. Since we are teetering on a depressed currency, they are not doing that.
I think that is what they are doing, selling more bonds than they need. I am in the camp that thinks as worldwide assets collapse and most world debt is in dollars, we will see the dollar increase as people scramble to get dollars to pay down debt.
Quote:
Originally Posted by Tightwad
More than we need? Nope, all forget about all the "off the books" operations that the Gov't is engaged in.
I think you are on the right track Texan with your first two points but I still wonder, where is the money being held?
LOL..why the Fed of course. They CANNOT be audited !!!
They cannot be forced to show any of their off balance sheet transactions.
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