Treasury Secretary Yellen warns country will be financially insolvent by October if debt ceiling isn

https://www.naturalnews.com/2021-09...ountry-financially-insolvent-by-october.html#

Translated from their bureaucratic newspeak into normal, this means two inevitable perspectives. First, the money at the disposal of the American government will definitely run out within the next three weeks. Whether congressmen like it or not, they will have to authorize an increase in the level of public debt from the current $ 28.7 trillion to "very much up."
Secondly, since the American economy continues to be one of the key segments of the global economy, and new loans are less and less diluted by foreign borrowers, whose share in the total US government debt shrank to 26.6% (the lowest rate since 2008!), this process will cause an acceleration of inflation not only within the American markets, but will inevitably lead to a similar result in the world markets.
This means that prices for building materials, housing, cars, gasoline, vegetables, fruits, meat, fish, oil, and so on, will go up dramatically.
This is not to say that the American economy got sick just yesterday. Americans have been living beyond their means since the early 1980s. But if it took them 6 years to consume $ 2 trillion during that period (the US national debt in 1986 - 2 trillion, in 1992 - 4 trillion), then in just 8 months of 2021 the size of America's public debt jumped by 1.3 trillion!
And most importantly, the volume of REPO operations (short-term "interception" in the market by banks of free money in the "overnight" mode to quickly close holes in their own liquidity) in the American financial sector rose from 40-60 billion dollars in 2010 to more than 500 billion already at the beginning of 2020. Moreover, if earlier commercial banks "quickly borrowed" only from each other, then after the crisis of 2007-2008 the Federal Reserve System began to conduct REPO transactions directly.

The second piece of news from the Fed is even more interesting.
To somehow delay the onset of the "panic" that will finally kill her, Powell announced that now the Fed will stop publishing data on the state of American GDP. Formally, it is due to "the complexity of calculating GDP using the updated methodology due to the presence of new highly volatile variables in our model." In fact - due to the obvious excessiveness of the share of exchange indicators, which reflect anything other than the actual economy.
In other words, the Ministry of Finance and the dollar printing press stated the same idea. A terrible thing began in the United States - the American economic basin was overflowing. The Fed's money poured into it accelerates inflation, which is becoming uncontrollable. The question is not even that it has already reached 5.4% - the highest level in the past 13 years. Worse, that by 3.2 percentage points, that is, twice, it jumped literally in a year and a half. Thus, more than clearly confirming the conclusion about the pool.
And the worst thing is that all the existing mechanisms to contain it stopped working. The Fed rate is already "at zero" (0 - 0.25% per annum), making money virtually free. There is nowhere to lower it further. According to the rules, it should be unscrewed in the opposite direction. Ideally, up to 4-5% per annum. But this cannot be done due to the total loss of the American economy as a whole and the impossibility of servicing the already accumulated debt.
Here's how. US GDP at the end of 2019 was $ 23.165 trillion. During 2020, ostensibly to save the economy from the economic consequences of the coronavirus epidemic, the Fed "printed" $ 9 trillion, but at the end of the year, GDP reached only 27.5 trillion. dollars. That is, it grew by only 4.3 trillion, and the remaining 4.665 trillion where did it go?
They went to cover current losses. Consequently, the current loss ratio of the US economy is already 20.13%. If the previously produced QE programs are calculated using the same methodology, it is easy to see that in 2008-2009 the loss ratio calculated in this way did not exceed 3-4%. It turns out that over the decade, the unprofitability of the United States has jumped about 5-7 times.
So the Fed's sudden desire to stop showing others the numbers of the current state of the US economy (and then there is Afghanistan) is quite understandable. Is not it?

 

Maybe Congress will, if they can slip it in between their investigations of selfie-takers run amok.

 

Democrat or GOP control, it's the same song

When will we the people demand spending cuts and I mean actual cuts? Why should these incompetent politicians continue to have jobs where govt contracts enrich themselves and family/friends?

 

Treasury Secretary Yellen warns country will be financially insolvent by October if debt ceiling isn

Perhaps a little insolvency would help motivate some control over reckless government overspending. Nothing else seems to work. Hello, Janes, shut down some programs. Close some stuff. Fire some people. It is what we in the private sector have to do when we don't have enough revenue. But the reality is she is full of nonsense. Government will just print the money - a tax in effect - and keep overspending. Concentrate on your job, dear, and avoid the fear mongering.

 

The famous French philosopher Charles Louis Montesquieu said - "Every nation has the government it deserves."
Therefore, until people stop believing the promises of political swindlers and hope that changing one president for another can change their lives, scammers will rule society.
It is necessary to change not the presidents, but the ruling class and change the social and political structure of society.

 

The ruling class will never voluntarily give up its privileges, such as cost overruns.
Because in this murky water, you can make good money at the expense of taxpayers.

 

If anyone understands that, it would be a Russian.

 

You're right. The Russians understand. Therefore, in 1917, the Russian overthrew the parasites and exploiters and created a state of freedom, equality, brotherhood.

 

Happens all the time. They shut down the government (national parks etc) for a while, and then approve the money

 

Well, you can count on Congress to dawdle up to the last minute. They've got a strange idea that they can count on extraordinary measures to carry the day so they don't have to act.

 

....and devoid of freedom to succeed.

 

Fantastic post. Informative, written in understandable English ather than academic cool-speak, and comprehensive in its scope. Keep posting.

 

Russia created freedom, equality and brotherhood? Was that before or after Stalin starved millions of Ukrainians? Before or after the system collapsed because no one had food? Before or after it simply fell apart?

 

gag me

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Tejas... Did you know that the University of Texas recently dropped the "Come and Take It" cheer from their football team cheers? We must stay vigilant.

 

Like the rest of the country, Anglo Texas has been slowly degenerating for a long time. It's not even Anglo Texas anymore as Anglos are now a minority. No one is more aware of this great loss than a born and bred Texan [two brothers in my family fought in the battle of San Jacinto that won Anglo Texas independence.]

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Two brothers of yours fought at San Jacinto? So you are like... 200 years old? Wow...

 

Texas is a great place. We don’t burn cities or loot stores. (I feel a song coming on…) Our streets are clear of injection needles, garbage, and feces. They are CLEAN. We have some homeless, somewhere, but you must look hard to find them. If you remove Austin, you may never find any. We don’t have cities that are battlefields like Illinois. We don’t have cities with typhus and the odor of feces like California. We don’t have old people being attacked routinely by teenage thugs like New York. We don’t defund our cops… we raise their funding. We love our cops.

We love freedom. We have no state income tax. We aren’t forced to wear Obedience Masks. We don’t have to “distance”. Our schools are and have been open (our kids will be doctors and astronauts when blue state kids are still huddled at home trying to read). Our restaurants are open as are our stores, beaches and malls. One rarely sees an Obedience Mask, but anyone is free to wear one if they wish. (And we are 23d in China Virus death rate per 100,000… pretty average.)

We love freedom. When we moved here we used “PODS”. Our town near San Diego, CA charged us $200 each to park them in the street while we loaded up. When we got here I called the town to see what the parking cost would be. The guy laughed and said “Nothing”, then offered to send over help to assist us in unloading. Heck, we don’t even have to leave deposit on bottles and cans here.

We love freedom. Everyone here proudly flies the flag. If your car breaks down on the road, people will stop to help before you can get out of your car. People smile a lot. Laugh a lot. Texas is a happy place.

We love freedom. SUPERWIFE and I can walk (no mean feat at our age) to great ribeyes at “Texas Roadhouse” or have sushi, Italian, Chinese or Thai just as easily. I had a house on the Chesapeake once and love softshell crabs. I was happily surprised that they are easy to get here in Texas too.

We love freedom. In San Diego, CA we had a two bedroom hovel on a postage stamp of land for $750,000. Here. For less than half that, we have a nice four bedroom, three bath (one with a walk-in tub) home with a jacuzzi and a nice big storage shed. A neighbor on one side is a pharmacist. On the other is a Hispanic family (whose family was old here when my ancestors were still in Ireland) with wonderful kids, all educators following in their college-professor dad’s footsteps. Across the street is an engineer. We talk a lot because I’m a retired engineer.

We love freedom. And that means we love our Governor. Gov Abbott is a fighter. He withdrew our Guard from DC when it was obvious that being there was just a waste of time. He guards our border when the federal government refuses to do so. Eleven other states sent assistance to guard the Texas border, marking Abott as a true leader among state governors nationwide. (Much better than having a sex assaulter, killer of COVID oldsters as Governor.) He fights for our rights as evidenced by the new law allowing “Constitutional Carry” and so many other aspects of the Second amendment prohibited in blue states. He protects our right to free speech by attacking those that would stifle it. He is intolerant of those that diminish democracy by running from their assigned duties in the legislature. He also protects us from the political indoctrination of racist Critical Race Theory, doing his best to keep the proud history of our country and state intact and healthy. He provides laws that the people want, even when controversial, as shown by the new abortion law. He defends all these actions even when busybody blue staters try to interfere.

And that may be his greatest contribution. He is about delivering what Texans want, no matter how unpopular it may be with out-of-state naysayers who have no business in our affairs but feel compelled to criticize. Democrats would demean voting and decide FOR us on all manner of issues. Abbott listens to the people and gives them what they VOTE for. That is what democracy is all about. Blue staters, holed up in their abodes shivering in fear of the China Virus, should put their own states and cities in order before worrying about Texas. Gov Abbott is a Godsend.

I admit that I don’t understand why liberals are compelled to control other people’s lives. It seems so innocuous. Especially since they seem so unable to control their own lives. Rather than go to school and attain skills which could earn them a lucrative salary and benefits, they rant and rave about raising the minimum wage, or extension of free money benefits. They look for free medical, free college and free everything. In some cases they fight for illegal immigrants to get free stipends. Maybe if they used all this time to learn a trade, they would be too busy raising families, cutting their lawn and shopping for a new car to be so angry.

Oh well, here in Texas we never try to tell folks in other states what to do or how to do it. We’re a positive crowd here. And criticizing others out of hand is so negative, so childish, so depressing.

We love freedom here in Texas.

 

Of course not. Did you really not understand what I meant ??

When I said two brothers in my family, I referred to my extended generational family.

Pity in today's culture so many people are disconnected and rootless. They don't even revere their own personal nuclear family... much less their extended generational family... their family roots.

My sister is DAR... so maybe I'm more used to DAR culture as she and I together researched our family tree. If you don't know what DAR means... google it.

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That is something you would have to ask the person that posted that.

 

The USSR should not be confused with the USA.

 

Thanks for your rating.

 

You are correct. After many decades, Russia has just recently (in the general scheme of things) thrown off the crippling yoke of Communism

We are just now about to put it on.

 

It never is by me.