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Tag Archives: Debt Ceiling

The Great Resignation Continues…

A Pfennig For Your Thoughts December 9, 2021 * Currencies rally on Wednesday, but metals don’t…  * Communists needn’t apply…  Good Day… And a Tub Thumpin’ Thursday to one and all… well, I Have nothing for you this morning regarding St. Louis sports, and I’m sure y’alll will have no problem with that! I made myself dinner last night again, and this time I really outdid myself! Yummy! I used white wine for my pasta sauce, and then drank the rest of the bottle myself! I’m sure Kathy is not...

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Treasury Binges in October, Adding Almost Half a Trillion in Debt

After all the drama, Congress finally did what everyone knew it would do.  It raised the debt ceiling by $480 billion in October. The Treasury wasted no time and quickly added $480 billion to the national debt in the second half of the month.With this new debt tagged on, if the Fed has to raise rates to 6% to fight inflation, it would increase interest costs by $250 billion within 6 months and nearly $1 trillion within a few years. This is why the Fed must tell everyone that inflation is...

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Peter Schiff: The Debt Ceiling Is Really a Debt Floor

We have a temporary truce in the debt ceiling fight. On Thursday, President Biden signed a bill increasing the federal debt limit by $480 billion. But this isn’t an end to the debt ceiling fight. Congress just kicked the can down the road. The increase is only expected to keep the US government solvent until Dec. 3.As Peter Schiff explained in this clip from his podcast, the debt ceiling has turned into a debt floor.Janet Yellen has already announced the Treasury will...

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How the Debt Ceiling is Actually a TRAPDOOR

Today’s video from Mike Maloney is a must-watch. In this clip, you’ll learn how the National Debt is a huge open pit that we are constantly digging deeper into the future, while supporting ourselves with nothing but a flimsy trapdoor. It is one of Mike’s best analogies to date, we hope it helps your understanding of what we currently face. Enjoy.

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The funding challenges ahead

Goldmoney Insights – October 7, 2021 This article looks at the Fed’s funding challenges in the US’s new fiscal year, which commenced on 1 October. There are three categories of buyer for US Federal debt: the financial and non-financial private sector, foreigners, and the Fed. The banks in the financial sector have limited capacity to expand bank credit, and American consumers are being encouraged to spend, not save. Except for a few governments, foreigners are already reducing their...

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A Lack of Self-Reflection: SchiffGold Friday Gold Wrap Oct. 8, 2021

Inflation continues to run hot. Even some of the folks over at the Fed are having a hard time peddling the “transitory” inflation narrative. But politicians and government officials lack the skill of self-reflection. As a result, they can’t clearly see the problem. In this episode of the Friday Gold Wrap, host Mike Maharrey looks at some of the latest inflation data and the Fed’s response to it. He also touches on the fake debt ceiling fight and breaks the September job report numbers.The...

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Bad Timing and Budget Gimmicks

I wrote a column for Creators yesterday where I noted that while for me more spending is always too much, for some politicians, it will never be enough. In fact, to pass a gigantic $3.5 trillion spending bill, which is facing opposition from Senators Manchin and Sinema, some legislators are ready to resort to budget gimmicks. In fact, they are quite open about it. But now I am thinking that I underplayed the budget gimmick part of the argument. For some backgrounds,...

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The $1 Trillion Platinum Coin

A non-economist friend emailed me yesterday and asked me to explain the proposal for a $1 trillion platinum coin. The proposal is that the Treasury mint a coin with a face value of $1 trillion and sell it to the Federal Reserve for $1 trillion. That way the Treasury gets an additional $1 trillion without the federal debt going up at all. It’s a way around the ceiling on the federal debt. According to Paul Krugman, who advocates such a coin, this provision of the...

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Setting The Timer On The Debt Ceiling… Again…

A Pfennig For Your Thoughts Roctober 4, 2021 * Currencies & metals rally late last week…  * We end this week with the Jobs Jamboree!  Good Day… And a Marvelous Monday to you! And Welcome to Rocktober! Well, the regular season ended yesterday, and I was rooting for a 4-way tie for the Wild Cards in the American League. But all the teams failed to cooperate, and the race didn’t end in a 4-way tie… My beloved Cardinals will travel to L.A. to play the Dodgers in a one game winner moves...

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Did The Treasury Raid $250 Billion from Government Retirement Accounts (Again)?

The Treasury bumped up against the debt ceiling at the end of July. Since then, it has been using “extraordinary measures” to allow the Government to keep hemorrhaging cash without having to increase the debt ceiling.The chart below shows the month-over-month change in debt for August equal to $0. Despite zero net change, there are two important facts to highlight.The Treasury continued converting short term debt to long termNonmarketable debt holdings shrunk by $257BThe conversion of...

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