After persistent calls from the United States Treasury to replenish the federal government with more monetary funding, the Treasury has now revealed that this number will be a historic $776 Billion, which is the most ever lent in the fourth financial quarter of the fiscal cycle.

The Department of the Treasury made their announcement in a press release on October 30th, stating:


The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing[1] for the October – December 2023 and January – March 2024 quarters.

  • During the October – December 2023 quarter, Treasury expects to borrow $776 billion in privately-held net marketable debt, assuming an end-of-December cash balance of $750 billion.[2]  The borrowing estimate is $76 billion lower than announced in July 2023, largely due to projections of higher receipts somewhat offset by higher outlays.[3]
  • During the January – March 2024 quarter, Treasury expects to borrow $816 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion.[4]

During the July – September 2023 quarter, Treasury borrowed $1.010 trillion in privately-held net marketable debt and ended the quarter with a cash balance of $657 billion.  In July 2023, Treasury estimated borrowing of $1.007 trillion and assumed an end-of-September cash balance of $650 billion.  The increase in privately-held net market borrowing was $3 billion:  changes across all major components were small.  

Additional financing details relating to Treasury’s Quarterly Refunding will be released at 8:30 a.m. on Wednesday, November 1, 2023. 


CNN provided a few additional details concerning these new expected borrowing costs:


Treasury’s new estimates will inform the size of upcoming auctions for bills, notes, and bonds — the details of which are set to be released by the agency on Wednesday morning.

Yields on Treasury-issued debt immediately slid following the announcement but started to bounce back not long after. Yields have been elevated in recent weeks for a variety of reasons, one of which has been concerns about how much money the government is borrowing.

The updated estimate likely means Treasury will issue fewer bonds this quarter than investors were bracing for. When the Treasury issues more bonds it often causes bond prices to go down, which in turn pushes yields up.

The Treasury also said it expects to borrow $816 billion in the first quarter of next year. That would also mark a record level of borrowing for a first quarter.

Meanwhile, last quarter the government borrowed $1.01 trillion, or $277 billion more than the Treasury initially estimated in May.


AUTHOR COMMENTARY

Remember everyone: we can’t fund the government and need to borrow into the future to keep the lights on, but we can adequately fund two wars, says Treasurer Janet Yellen.

SEE: Treasurer Janet Yellen Says US Can Fund Israel And Ukraine’s Wars Simultaneously, Claims Economy Is ‘Doing Extremely Well’

Again, the Federal Reserve is neither federal nor a reserve: it is a private bank that prints money. This funny money is just created out of thin-air, and therefore just keeps inflation still running hot, contrary to the baked data they give us weekly.

[26] Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee?

Proverbs 22:26-27

[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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