The FT has an article this morning that focuses on the aftermath of the bipartisan agreement to lift the US debt ceiling.
In the article it is noted that because of the Biden administration’s appropriate and ambitious plans to transform the US economy Treasury Bill issues by the US Treasury might soon be at all time high levels, excluding 2009 and 2020.
No, actually that’s not what it does say.
A $1tn US government borrowing spree is set to increase the strain on the country’s banking system as Washington returns to the markets in the aftermath of the debt ceiling fight, traders and analysts say.
Following the resolution of that dispute — which had previously prevented the US from increasing its borrowing — the Treasury department will seek to rebuild its cash balance, which last week hit its lowest level since 2017.
JPMorgan has estimated that Washington will need to borrow $1.1tn in short-dated Treasury bills by the end of 2023, with $850bn in net bill issuance over the next four months.
That is what it does say.
The US hit the debt limit back in January. There’s a certain amout of fiddling they can do – run down the cash balance, as mentioned. But they can’t issue new T-bills or T-bonds, the debt limit.
So, debt limit now raised. Treasury needs to reverse the fiddles. Build up the cash balance, issue the bonds it would like to have issued from Jan to June but couldn’t.
It’s piss all to do with Biden’s climate change plans or their costs.
Isn’t typical of Murphy to support something that will ultimately destroy the US economy if implemented ?
‘It’s piss all to do with Biden’s climate change plans or their costs.’
That’s a trifle alarming Tim. After all his climate change and other rubbish will cost the Yanks trillions more.
One does wonder how long this can go on before everything Zimbabwifies?
One does wonder how long this can go on before everything Zimbabwifies?
I’m sure they’ll still be doing the annual Debt Ceiling voodoo ritual long after they’ve reverted to daub huts and bones through their noses.
In many ways, modern society is already a cargo cult.
Surely, sensible, professional Joe Biden, veteran, seasoned politician that he is, can’t be doing what that silly little housewife Liz Truss tried? Borrowing money? Just plain stupid! We can see what the consequences will be, the Fed will refuse to raise interest rates until he’s replaced by Trump!
Oh, wait…
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