For months, analysts have been warning that the US is set to borrow an unprecedented - for a non-recessionary period - amount of money.... ... and on Monday afternoon this was confirmed, when the US Treasury announced that in the quarter ended March 31, the US borrowed $47BN more than its had anticipated three months ago, or $488BN to be precise.
This was the single biggest quarterly amount of debt sold by the US Treasury since the record $569BN in debt borrowed in Q4 2008 when the financial system nearly collapsed, and Treasury had no choice but to raise a gargantuan amount of money during the biggest financial crisis in modern US history.
In the first quarter US GDP rose by 2.3% according to the BEA amid what, until recently, the "Experts" said was a global coordinated recovery.
As a result of the near-record borrowing spree, the US ended the quarter with $290BN in cash, more than the $210BN budgeted.
What is scary is how fast the US is raking up the debt: as a reminder, just a few weeks ago we reported that in the first six months of the fiscal year, the US budget deficit rose to $600 billion as spending increased at three times the pace of revenue growth in the October-to-March period.
They better, because if all we have to show for nearly a half a trillion in debt in one quarter is 2.3% GDP, then the US is in very serious trouble.
As for the last quarter fo the fiscal year, the Treasury plans to borrow a net $273 billion, assuming a cash balance of $350 billion by the end of that period.
https://www.zerohedge.com/news/2018-04-30/us-just-borrowed-488-billion-one-quarter-most-financial-crisis
This was the single biggest quarterly amount of debt sold by the US Treasury since the record $569BN in debt borrowed in Q4 2008 when the financial system nearly collapsed, and Treasury had no choice but to raise a gargantuan amount of money during the biggest financial crisis in modern US history.
In the first quarter US GDP rose by 2.3% according to the BEA amid what, until recently, the "Experts" said was a global coordinated recovery.
As a result of the near-record borrowing spree, the US ended the quarter with $290BN in cash, more than the $210BN budgeted.
What is scary is how fast the US is raking up the debt: as a reminder, just a few weeks ago we reported that in the first six months of the fiscal year, the US budget deficit rose to $600 billion as spending increased at three times the pace of revenue growth in the October-to-March period.
They better, because if all we have to show for nearly a half a trillion in debt in one quarter is 2.3% GDP, then the US is in very serious trouble.
As for the last quarter fo the fiscal year, the Treasury plans to borrow a net $273 billion, assuming a cash balance of $350 billion by the end of that period.
https://www.zerohedge.com/news/2018-04-30/us-just-borrowed-488-billion-one-quarter-most-financial-crisis
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