Well depending on where you read it, US Debt has now already crossed / is about to cross the $16 trillion mark!
(Yes, that's a large number of ZEROS!)
What is worrying is the rate at which it has risen this past year and the prudent market watcher can only worry about the cost of servicing this massive debt in the future once interest rates rise!!
Meanwhile, markets were trending upwards ahead of the Federal Reserve's annual symposium at Jackson Hole. However, it now appears that we may not hear anything new and markets are heading into the annual meet in a rather lacklustre manner.
So no QE3 for now I guess??
"""""November 16, 2011 was a historic date: that's when the US officially surpassed $15 trillion in debt for the first time since World War 2. We celebrated it by cheering $15,OOO,OOO,OOO,OOOBAMA. Today, August 28, 2012, is when we can unofficially celebrate again, because 286 days after the last major milestone was surpassed with disturbing ease, total US debt following today's $35 billion auction of 2 Year bonds is, well, in a word: $16,OOO,OOO,OOO,OOOBAMA!..................................................
The result: $16.05 trillion, which is what the debt to the penny will officially show next week.
Of course this will be the total following the balance of this week's auctions. In the meantime, the US is now officially between that ceiling and a $16 trillion floor.
But wait. You aint's seen nothing yet. At this rate of growth, total US debt will surpass:
- $17 trillion on June 10, 2013;
- $18 trillion on March 23, 2014;
- $19 trillion on January 3, 2015; and
And on, and on, and on..."""""
- $20 trillion on October 16, 2015
MORE LINKS :
""""August 29, 2012Rome, Italy
If you haven’t heard yet, the United States of America just hit $16 trillion in debt yesterday. On a gross, nominal basis, this makes the US, by far, the greatest debtor in the history of the world.
It took the United States government over 200 years to accumulate its first trillion dollars of debt. It took only 286 days to accumulate the most recent trillion dollars of debt. 200 years vs. 286 days.
This portends two key points:
1. Anyone who thinks that inflation doesn’t exist is a complete idiot; 2. To say that the trend is unsustainable is a massive understatement. """""""