The US federal government’s debt and interest payments are not out of the ordinary. They are the result of public opinion manipulation linked to a globalist conspiracy…
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Every day, the US government publishes the amount of federal government debt, which is (officially) actually around… $35,000 billion,
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Every day, the U.S. government has to pay the federal government’s bills and repay loans that have come due, thanks to the resources provided by taxpayers, i.e. their taxes.
For more than two decades, from 1986 to 2008, the U.S. government made these payments with a cash flow of between $5 and $10 billion at most.
However, everything changed from 2008 onwards: government cash flow fluctuated at over $100 billion, exploding to… $1,817 billion in 2020!
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Why have U.S. governments wanted to accumulate a cash position that has been, and still is, totally unrelated to their spending needs?
No sensible answer was given by the Secretary of the Treasury all the more easily… as no pertinent question was put to her!
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The federal government’s cash position currently stands at $774 billion, the latest figure published to date.
By comparison, the French government’s cash position averaged 6.7 billion euros in 2022,
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AFT is the acronym for Agence France Trésor, the entity that manages the French Treasury.
AFT has prepared for the resumption of active cash management in the context of rising interest rates.
AFT’s cash management is based on daily forecasts, which enable it to evaluate the amounts needed to finance future operations. Temporary cash surpluses can be placed on the interbank market, taking counterparty risk into account. These operations are carried out in the form of “unsecured” deposits (without collateral) or reverse repos on government securities (loans guaranteed by collateral). Average daily outstandings will be €6.7 billion in 2022. With interbank rates back in positive territory and the prospect of an end to the temporary remuneration of the Treasury account, AFT has prepared for a sharp increase in these operations in 2022.
As the ratio between the United States and France is, for simplicity’s sake, around 5 to 1, the US federal government’s cash position should be no more than $35-40 billion, not $774 billion!
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In addition, the US government publishes the Fed’s balance sheet every week.
Its assets include… $7,108 billion in government securities made up of Treasury bills and other securities that are ultimately guaranteed by the federal government (mortgages),
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Clearly, it makes no sense for an entity to have both claims on and debts to itself!
In other words, a state cannot borrow and at the same time buy back (part of) its debt. These operations offset each other (i.e., must cancel each other out) to determine net debt, which is the only concept to be taken into consideration.
These financial manipulations generate considerable financial costs, to the detriment of taxpayers…
Indeed, many Americans denounce the astronomical amount of interest charges: over $1,000 billion in a single fiscal year, which will have to be paid by the federal government, i.e. by taxpayers.
Interest charges alone are equivalent to three quarters of the total income taxes paid by Americans, many of whom are already struggling to live normally, particularly in view of inflation!
So, to determine the federal government’s net debt, we need to subtract from its published amount, i.e. $35,000 billion, the total of government securities held by the federal government, i.e. $7,108 billion, and (plus) the amount of the federal government’s cash position, which currently stands at $774 billion.
In other words, 7,108 + 774 = 7,882.
So, the federal government’s net debt is $35,000 billion minus $7,882 billion, or $27,118 billion.
Since the annual current GDP of the United States was $28,629 billion in the first quarter of 2024, the federal government’s real debt is on the order of… 95% of GDP!
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Public debt of the order of 95% of GDP is certainly high, but it is far from catastrophic. It can even be considered… normal!
The question then is: why is the Treasury piling up huge debt issues to feed its treasury to the tune of $774 billion, at the particularly high rates set by Fed officials, i.e. on a 5.33% basis, when a treasury of only $20-40 billion would be possible given what it was from 1986 to 2008?
The answer is obvious: Treasury officials, and Janet Yellen in particular, are out to make Americans poorer, especially those with limited resources!
This tax policy is part of the policy of weakening and destructuring America pursued by some of its leaders, especially the Democrats.
Indeed, contrary to popular belief, the politicians running the Democratic Party have sought to exacerbate Americans‘ economic and social problems.
Thus, for example, Barack Obama has intervened to facilitate the consumption of opiates, which has catastrophic consequences on the health of millions of Americans; Joe Biden has allowed millions of South American immigrants to enter the country illegally and without any controls, and is fuelling deadly wars outside the United States, etc.
The policies pursued by these American leaders are part of a wider, international framework, involving the manipulation of public opinion as part of a globalist conspiracy led by entities under the dominant influence of American and Israeli revisionist Zionists, who are themselves under the dominant influence of a sect known as Loubavitch.
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Note: if we exclude mortgage-backed securities, i.e. Treasury bills alone, which total $4,423.55 billion, the federal government’s debt ratio is 107%, which is not an insurmountable debt overhang!
For the record, our friend Fred from Saint Louis clearly shows that US indebtedness began to rise above its long-term trend from the first quarter of 2008.
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