Well, we have had a year to ignore an obvious problem. Looks like we have done a pretty good job of it - - STILL no interest? I’ll bet you pay attention by the end of 1st quarter, 2025 - -
Here’s the original MadChimp Debt Rant from a year ago - - as we prepared for LAST YEAR’s “Continuing Resolution”
Debt Rant
Sep 24, 2023
Look. I’m a simple guy. I try to understand things that are ‘over-my-head,’ and freely admit I need them “dumbed-down” before my feeble Irish grey-matter can wrap their tentacles around them. I’m particularly interested when I see Armageddon on the horizon, and none of the people we elect to keep it at bay seem the least bit concerned.
While ‘Climate Change’ and putting burgers on a charcoal grill may end life as we know it a few thousand years (probably NOT 12, as AOC and Gretta would have us believe), I am far more concerned with disasters that can be accurately measured and very likely to happen within my lifetime. I once worried about the world I would leave my children and grand-children, but found it too depressing. I am old. Now I just try to get to the finish line with both of my butt-cheeks intact.
Considering the global monetary system is one of those ‘deep-dives’ we feel we should understand better than we do - - but don’t - - So I offer a short read from BBC for details of the ‘latest’ “Debt-ceiling” deal (https://www.bbc.com/news/world-us-canadCongressa-65744615) and a short film from KITCO , with Michelle Makoei interviewing James Lavish. https://www.kitco.com/news/video/show/Market-Analysis/4542/2023-06-09/Treasury-could-drain-$1-trillion-in-liquidity-from-the-economy---James-Lavish#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DMarket-Analysis. Between the two of them, they got the whole thing ‘dumbed-down’ to the point I believe I have the general concept -
So I’ll take you right to the ‘punch-line’ - - a “punch” to the solar plexus that knocked the wind right out of my sails - -
Around the end of May, 2023, US Treasury, with the help of Congress, had depleted the Republic’s cash to about ¼ of a trillion dollars. On June 2, Congress reached a debt ceiling “deal” that suspended future “debt Ceiling Limits” until after the 2024 election, essentially giving Biden unlimited borrowing power.
Soon after the bill was passed, Treasury issued $2T in bonds@ far higher rates than we have seen in a very long time, essentially driving a stake through the heart of the bond market. Proceeds were used to fund $1.5T in expenditures that had already been committed by Congress. Note That - We were down to our last $1/4T, issued $2T debt, and 'poof!', 1.5 of it vaporized)
How could that happen?? Nothing to it. Fighting foreign wars is expensive - - so is raising an army on our southern border or whatever they are doing - - nobody will say - - but nobody doubts it is expensive.
Also expensive to fund an Army of IRS Agents to wring blood from stones, spin straw into gold, or whatever the plan is there - - . Whatever it is, arming a bunch of Government ‘auditors and enforces’ to the teeth does not bode well for the USA - - neither does inflating the value of the USDollar into oblivion, and neither does giving the men behind Biden’s curtain a free pass to bankrupt our Republic.
PS – Please note. Since it is no longer necessary to increase the debt ceiling, these mutts can simply ‘borrow’ for another 14 months. We passed our last “crisis” one quarter ago, and the drums are already beating to re-stock Treasury to cover the end of the fiscal year shortfall - - Now it will be with another Bond sale - - same result, much less fanfare - - pay attention! Rebuttal, reassurance, a pacifier&soft blanky, welcome.