Sunday , October 22 2017
Home / David Stockman's Contra Corner / Time Bomb Ticks As US Continues to Issue New Debt Despite Debt Ceiling

Time Bomb Ticks As US Continues to Issue New Debt Despite Debt Ceiling

Summary:
The Federal Government has continued to issue new debt despite the debt ceiling. It has done so by using its big pile of cash to pay down the debt it owes to Social Security and to government and military pension fund beneficiaries. That internal debt is included in the debt subject to limit. By paying down the internal debt, the government makes room to add to its public debt. It thus maintains a regular schedule of new issuance.

Topics:
Lee Adler considers the following as important:

This could be interesting, too:

Lee Adler writes Interest Rates and Wage Inflation

Lee Adler writes Doleful Retail Sales News Isn’t News and Won’t Deter The Fed

Lee Adler writes Yes, We Have No Inflation, Not Quite

Lee Adler writes Burden of Proof Now Shifts to Bond Bulls

The Federal Government has continued to issue new debt despite the debt ceiling. It has done so by using its big pile of cash to pay down the debt it owes to Social Security and to government and military pension fund beneficiaries. That internal debt is included in the debt subject to limit. By paying down the internal debt, the government makes room to add to its public debt. It thus maintains a regular schedule of new issuance.

About Lee Adler
Lee Adler
Editor and publisher of the Wall Street Examiner- http://wallstreetexaminer.com and The Wall Street Examiner Professional Edition, a proprietary service for professional investors and sophisticated individual investors.

Leave a Reply

Your email address will not be published. Required fields are marked *