It’s Official: US Debt Finally Tops $20 Trillion, Jumps By $318 Billion In One Day

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Top Tier Gear USA

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Following President Trump’s sign off last Friday on a short-term debt-ceiling/government funding/hurricane aid deal (thanks to Democrats’ votes), the US Treasury was finally freed from the shackles of the debt ceiling which it hit nearly one year ago and which meant that US federal debt would be at roughly $19.808 trillion for months.

Well, no more: according to the latest Daily Treasury Statement as of Friday, total US debt surged by $317.6 billion from its Thursday closing print of $19.845 trillion, following the short-term debt suspension which kicked the can through December 8, to finally rise above the “psychological barrier” of $20 trillion, or $20,162,176,797,904.13 to be precise.

As shown in the chart below, from March 16 until Thursday, Sept. 8, the official federal debt subject to the legal limit was at $19,808,747,000,000, i.e. the statutory debt ceiling. This is because the previous suspension of the debt limit expired on March 15 and the debt limit had been reset on that day at the level the debt reached at the close of business that day. On that day, the Treasury started using “extraordinary measures” to keep the debt subject to the limit about $25 million below the limit.

The Treasury was finally freed from this limit on Friday, and thus the $317.6 billion surge in one day as the US Government replenished its extraordinary measures, which should allow the Treasury to coast until some time in March even after the next debt ceiling is hit on December 8.

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  • darkhorse

    thanks for this article, Sheeple…I was hoping for some good news….

  • darkhorse

    what we’ve got here is a failure to communicate…

  • SP_88

    This debt will never be paid. They are going to continue to run up the debt until the system crashes.

    • The Tuna Fairy

      It can’t be. The money to pay it with would also have to be printed by the Federal Reserve, and they would charge interest on the new money too. Simple math says it can never be repaid under the current system.
      Most of the debt is owed to banks, who have done nothing useful to earn the interest they charge. The system is broken, it’s just a matter of when it will crash.

      • SP_88

        Yep. It’s not so obvious with all the trillions of dollars in circulation. But if they were to start from the beginning, it would be obvious.
        Let’s say that there is zero money. Then, the Fed prints up a million dollars, and loans it to the government at 0.01% interest. Now there is $1,000,000 in existence. But the debt total is $1,010,000. So how do you pay a debt when all the money in the world is $10,000 short of the total debt? And that’s assuming that none of the money was spent, and 100% of it is going towards the debt.
        This debt is mathematically impossible to repay. Not just because it is so high, but because quite literally, all the money in the world is not enough to pay back the debt.
        And I think that part of the reason why these people spend money like it doesn’t matter is because they know what a bullshit scam this is, and that it really doesn’t matter what they do because the system is doomed to collapse no matter what. And they might as well get something out of it while they can.

        • David Schultz

          The problem is in the treasuries that are supposed to support this system. Currently the Federal Reserve has been holding treasuries basically as unsecured loans to the government. The Fed now holds more treasuries than any of the major international customers. That is brazenly dangerous. If the demand for US treasuries should falter the Federal Reserve System will collapse.

          • SP_88

            My memory of these things is a little rusty. But I do remember hearing that China was going to collapse the dollar at some point by dumping our treasuries. The Fed responded by buying them up with printed money to prop up the system.
            They’ve really set themselves up for a serious crash at some point. This obviously cannot continue forever.

          • David Schultz

            Japan, Saudi Arabia and China each held around a trillion in treasuries. It change so don’t hold me to exact numbers. (check link below) The Fed now owns about twice as much as each of any one of these big holders. The Fed really wants to get rid of these bonds because but can’t. With the debt limit being raised they may need to hold even more. To dump them the Fed would need to raise interest rates which will kill the economy and raise the national interests payment!
            . . .
            All in all China’s US treasury ownership is not really that big of a slice out of the total pie. China does not hold us hostage. If necessary the Fed could could hold 4, 5, 6 trillion in US treasuries. What does it matter anymore?

            https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

          • Michael Valentine

            Well if anyone looked real hard the dollar becomes worthless.

          • David Schultz

            Actual book value considering amount of bullion available and ability to tax would come to pennies on the dollar. I just got called on the carpet for tramping at Breitbart. So be it. If we don’t get those guys to dump Ryan’s globalist congress in 2018 we are friggin’ doomed.

          • Kapricorn4

            The US dollar is supported by the US military. In addition, the fact that $billions if not $trillions are held static in bank accounts by an exceedingly rich minority, that effectively starves the US economy of money. This is the savings paradox. If these few people tried to spend all their money there would not be enough goods or services for them to buy up and prices would zoom upwards, while the stock market would simultaneously crash.

          • SP_88

            That makes sense. Is it possible that China did actually think they could collapse the dollar, but were unaware that the Fed was able to buy up everything they could dump?
            Also, I don’t know if China thought they could dump our treasuries by themselves, or if they were planning on doing it together with other countries that held large amounts of US treasuries.
            Obviously if several countries got together and dumped all the US treasuries they held, it would have a much more profound impact on our economy. But it doesn’t sound like a viable option to collapse the dollar or our economy.
            Plus, these countries also hold large amounts of dollars. If they were to collapse the dollar, they would be hurting themselves by making worthless something that they have a lot of. And that’s not very smart.

  • John C Carleton

    Hey, its just paper, ink, or dismal points on a computer program.
    It is not as if the debt is real. There is no real money involved, just Monopoly paper.

    • It is not Paranoia

      That’s the spirit.