{"id":30369,"date":"2018-01-31T07:49:38","date_gmt":"2018-01-31T12:49:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30369"},"modified":"2018-01-31T07:49:38","modified_gmt":"2018-01-31T12:49:38","slug":"us-national-debt-will-jump-by-617-billion-in-5-months","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30369","title":{"rendered":"US National Debt Will Jump by $617 Billion in 5 Months"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/01\/30\/us-national-debt-will-jump-by-617-billion-in-5-months\/\">US National Debt Will Jump by $617 Billion in 5 Months<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>Just as the Fed accelerates its QE Unwind. Treasuries reacted.<\/strong><\/p>\n<p>While everyone is trying to figure out how to twist the new tax cut to their advantage and save some money, the US Treasury Department just announced how much net new debt it will have to sell to the public through the second quarter to keep the government afloat: $617 billion.<\/p>\n<p>That\u2019s what the Treasury Department\u00a0<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sm0268\" target=\"_blank\" rel=\"noopener\">estimates<\/a>\u00a0will be the total amount added to publicly traded Treasury securities \u2014 or \u201cnet privately-held marketable borrowing\u201d \u2014 through the end of the second quarter.\u00a0This will be the net increase in the US debt through the end of Q2. By quarter:<\/p>\n<ul>\n<li>During Q1, the Treasury expects to increase US public debt by $441 billion. It includes estimates for \u201clower net cash flows.\u201d<\/li>\n<li>During Q2 \u2013 peak tax seasons when revenues pour into the Treasury \u2013 it expects to increase US public debt by $176 billion.<\/li>\n<\/ul>\n<p>It also \u201cassumes\u201d that with these increases in the debt, it will have a cash balance at the end of June of $360 billion.<\/p>\n<p>So over the next five months, if all goes according to plan, the US gross national debt of $24.5 trillion currently \u2013 which includes $14.8 trillion in publicly traded Treasury securities and $5.7 trillion in internally held debt \u2013 will surge to about $25.1 trillion.<\/p>\n<p>That\u2019s a 4% jump in just five months. Note the technical jargon-laced description for this (marked in green on the chart):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-38745\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2018\/01\/US-Gross-National-Debt-2011-2018-01-30.png\" alt=\"\" width=\"498\" height=\"535\" \/><\/p>\n<p>The flat lines in 2013, 2015, and 2017 are a result of the prior three debt-ceiling fights. Each was followed by an enormous spike when the debt ceiling was lifted or suspended, and when the \u201cextraordinary measures\u201d with which the Treasury keeps the government afloat were reversed. And note the current debt ceiling, the flat line that started in mid-December.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>US National Debt Will Jump by $617 Billion in 5 Months Just as the Fed accelerates its QE Unwind. Treasuries reacted. While everyone is trying to figure out how to twist the new tax cut to their advantage and save some money, the US Treasury Department just announced how much net new debt it will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,549,661,8625,827,4254,4255],"class_list":["post-30369","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-national-debt","tag-qe","tag-quantitative-tightening","tag-united-states","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30369"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30369\/revisions"}],"predecessor-version":[{"id":30370,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30369\/revisions\/30370"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}