The U.S. Added $275 Billion in Debt in One Day
October 3rd, 2023The US added – checks notes – $275 billion in debt in, uh, ONE DAY
Total US debt is now $33.442 trillion, hit $33 trillion just 2 weeks ago, and on pace to rise by $1 trillion in 1 month.
WTF is going onhttps://t.co/tOrhqmkFXL pic.twitter.com/w3qnBAIfLh
— zerohedge (@zerohedge) October 3, 2023
What happened? I think the simple answer is the ship’s hit the fan.
Apparently the IMF has a lot of control over the distribution of wealth among nations, choosing which ones must donate to its fund and which ones can get donations from the fund, and which can have loans and which have to make loans, as well as somehow conjuring more money out of thin air to cover these transactions than their fund held before the need for more arose.
The amounts the IMF deals in don’t seem to be backed by any hard assets like gold or even cash. They are just numbers appearing on the balance sheets of the IMF and the countries who participate in it. What they represent is not actually money but the authority to spend up to a certain amount.
In our case, the Federal Reserve and the US Treasury cooperate to keep enough cash in circulation to meet the portion of the authorized amount that will be converted to cash, such as when an arms manufacturer pays his employees and they take some cash out of their paycheck. The portion not converted to cash by the recipient remains as just a number added to his bank account balance.
The IMF must want the Ukraine war to continue, because the US keeps getting the needed numbers (loans) on its balance sheet. Nobody seems concerned about repayment. It’s like CBDC: you are authorized to spend x amount on y item. There is no repayment, only authorization to spend, or not.
That’s why loans to the US can be endless, as long as we spend the money where the IMF says we must.
I wonder how deep the IMF’s claws go — money for illegals but not for Lahaina victims or homeless veterans? State and Fed agencies and congresses decide that, don’t they?
Why is the money for Ukraine not being loaned directly to Ukraine? Is it to force Ukraine to spend some of it on US products? To allow certain corrupt US persons to take their cut before passing the rest on to Ukraine? Is an equal amount being loaned to Russia, or to a Russian ally who passes it on to Russia?
I don’t think a quarter trillion is/was for Ukraine. I’d bet that was a patch for a derivative sink hole that appeared all of a sudden. The Nothing approaches…
Good questions Snowman–the IMF manipulations of the World are monumental and because of the status of the US dollar as world reserve currency, so are the FED’s. As the World gradually de-dollarizes, it does seem like the boot of the IMF will rest more and more heavily on the US.
Wondering if you’ve looked at the mechanism of remittances from the FED to the US Treasury, as a type of shield for the US against the consequences of deficit spending? If not, the idea is that the FED has the ability to buy up all kinds of outstanding US debt (T-notes, T-bonds, etc.) and then the interest that it collects from the US government on those debt instruments is refunded (minus FED operating expenses) back to the US treasury. This article explains how the “shield” is going away:
https://www.stlouisfed.org/on-the-economy/2018/september/fed-payments-treasury-rising-interest-rates
This other article goes into the effects of quantitative easing on remittances to the treasury:
“As shown in table 1, our analysis indicates that QE4 will cost taxpayers about $760 billion over a 10-year period. The Fed will absorb that cost by completely suspending its remittances to the US Treasury for the next five years and paying minimal remittances in subsequent years. The Fed’s remittances would have exceeded $100 billion per year throughout the coming decade if QE4 had not been conducted.”
https://www.mercatus.org/research/policy-briefs/federal-reserves-balance-sheet-costs-taxpayers
I understand how large it is, but I don’t see the “dollar” reserve currency slowly unwinding over years. This international unit-of-account is now effectively meaningless. Using fiat reserve notes from here on out is a game of musical chairs. “There’s no use playing if you’re winning in a losing game.” JD Souther
I think the so called euro-dollars, by themselves, could unzip this son of a bitch overnight. Any contract written from here on out using greenbacks is a fool’s errand.
Everything around us preparation for this moment. Boarder down? That will snap shut. Problem with criminal migrants? Marshall Law. No parts arriving at ports? Blame the unions. The trend is the trend and the trend is bad.
The mechanism of remittances that you discuss seems to me to be one of the myriad methods used to move numbers around at the intra-country level in the IMF’s shell game. (I mention only the IMF, but I think there is a team handling the world’s financial systems that includes the IMF, the WEF and others. I think of the IMF as the team leader.)
Fed methods that look rather like money-laundering, counterfeiting, theft, , etc. — because it can’t be done by honest means — will be used as long as the results push us closer to reaching whatever goals the globalists have decided upon for our economy. If they want to bankrupt our govt. in order to bankrupt all of us, stopping remittances should help. If they are just roiling the waters to keep us worried, then the absence of remittances will somehow fail to have much impact on the Treasury, just as the absence of student loan repayments seems to have no impact on people or institutions, but only on balance sheets.
If devaluing our USD helps their cause, it will be done. It is taking a long time to get all the major govts to agree to go along with such a big change and to agree to what (or whose) currency will become the world reserve, or at least not to take up arms against the action, but globalists think and work in terms of decades and centuries. We are but frogs in their globally warming water.
If the USD is radically devalued, the US govt won’t necessarily be — it can just ask the IMF for its next loan to be given in whatever the world reserve currency is, and the govt will be fine as long as repayment is still not being collected by the lender.
The switch in currency would be yet another good excuse to close banks and go to CBDC’s. The govt would have only the new money to spend and could refuse to accept anything in payment but the new money. Then it could declare that its CBDC’s are backed by the new money. If only the govt has the new money, and it distributes it only through its own online bank, then anyone who relies on his sales or a paycheck, or who has any debt to pay off, or uses money as a medium of exchange for any reason, will be forced to use the govt’s CBDC bank.
The govt can easily control the impact on us of the devaluation of the USD by having people trade their paper dollars and bank account balances in for its CBDC’s. The banks could do the collecting and account transfers before they are closed. If for every USD we hand over we get a CBDC unit that will buy today what the dollar would have bought yesterday, people will probably accept it or even welcome it (so trendy, you know).
And, if the govt chooses, it can use different conversion rates for the money traded in for different people. My one USD could be worth 1 CBDC, while others could get any number of CBDC’s for each of their USD’s, depending on how comfortable or wealthy the govt wanted each of the others to be. Think of it — the govt could solve so many of our social issues simply by multiplying the USD’s a person has by what the govt thinks he ought to have! Reparations made easy! And deprivation made just as easy! As long as the govt keeps getting more numbers which represent reserve currency amounts from the IMF than it has to start paying back, and as long as the deprived can be restrained or contained, this can work.
Of course, no paper or other hard-copy records will be allowed. That could be evidence if money disappeared from your account without acceptable explanation, but the CBDC bank said it was never there to start with. Digital is deletable.
When enough countries have their own CBDC bank up and running, then the IMF can open its CBDC bank, everybody can trade-in their own CBDC’s for the IMF’s. and a global currency controlled by a central world bank will have arrived. It will have cut out all the middle men and will be directly able to make or break a continent or country or person as its owners choose.
Snowman +1