by James Hickman via Schiff Sovereign
It’s barely six months into the US government’s ‘fiscal year’ (which started on October 1, 2023) and the federal budget deficit is already $1.1 trillion.
This number is utterly astonishing.
Of course, anyone paying attention to the rapidly dwindling US financial condition knows that the national debt is now hovering around $35 trillion.
That’s up $2 trillion in the last year alone, and up nearly $20 trillion over the last decade.
More importantly, the Congressional Budget Office has projected that the US national debt will increase by another $20 trillion over the next decade.
Those numbers are obviously bad. Horrendous, really.
But what’s even worse is how much NEW debt the government actually needs to sell each year just to repay its OLD debt.
Remember, whenever the government borrows money, they issue bonds in various denominations; these bonds can be as short as 28 days, all the way up to 30 years.
Whenever these bonds mature, the Treasury Department is obviously supposed to pay them back in full. Of course the federal government doesn’t actually have money to repay its debts. So, instead they issue new debt to pay back the old debt.
And the amount of money they have to raise just to repay old debts is staggering.
Last year alone the Treasury Department had to raise nearly $20 trillion to repay maturing bonds. Plus, they borrowed an additional $2.4 trillion in brand new debt on top of the $20 trillion.
Unbelievable
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