Debt service is about $500 Billion in 2021; the deficit is right about $1 Trillion. The US government is borrowing money to pay the interest on the Debt. A standard definition of Bankruptcy. And, it’s during what is called an Economic Expansion.
The only source of funds that could pay off part of the Debt, maybe a 1/3 of the $22 Trillion, is, to tell the truth about the Mortgage-Backed Security mess. Cleaning up that mess may have cost a few $Trillion – but many more $Trillions were made “on the way up” – via fraud.
The US gov. has a legit reason to claw back some of those Credit Derivative profits, but it would involve seizing the wealth of a demographic that is obviously given preference in US society – Jewish Bankers. Since the US gov. doesn’t have the stomach for that, they have no options but to print digitally.
Welcome to The Atlantis Report.
It’s no longer just me using terms like “Armageddon, crisis, devastating, chaos, Great Depression;” it’s leaders of the world’s most noble and conservative central banks! The big banking squeeze that began in September never went away. In fact, repo auctions last week looked worse than ever, in spite of the Fed’s launching of QE4ever.
With a new $60 billion a month in permanent re-inflation of money supply pouring back into the economy now, the Fed still has found itself back to where it began in September with its repo operations becoming hugely oversubscribed, meaning it has more takers than what it is offering to give.
Dealers submitted $52 billion in securities for two-week “loans” of new temporary money this past week against the Fed’s offer to do $35B worth. The question here is who has access to Repo, and where does the money go??
The repeating issue of a dollar shortage in overseas demand comes to the front. And it may be nothing more than Turkey dollar debt and the invasion of Syria. On a larger scale it goes to China, thats’ Doug Nolands read, the Fed is not simply liquifying US markets he is pumping global markets. Why? The usual signs of credit tightness are not there, LIBOR has been steady lower.