Starting Off With A Bang: In First Month Of Fiscal 2013, US Adds $195 Billion In Debt

Starting Off With A Bang: In First Month Of Fiscal 2013, US Adds $195 Billion In Debt (ZeroHedge, Nov 1, 2012):

It seems like it was only yesterday that the US closed the book on Fiscal 2012 (technically, it was September 30), with a modest $16.066 trillion in debt. What was notable is that the monthly additions to the total debt balance toward the end of 2012 were getting smaller and smaller until the October incremental addition was a puny $50 billion (even though mysteriously the US ended up with a budget Surplus of $75 billion for the month). Turns out it was merely yet another political stall tactic to avoid the true face of America’s debt peeking into the open public. Because as of several hours ago, the DTS announced the total debt as of October 31, or the first completed month of fiscal 2013. The number: $16.262 trillion. This means that in the month of October, when delaying displaying the true creditor plight of this country was no longer an option, Uncle Sam went to town, and raised $195 billion. This amounts to $6.3 billion per calendar (not work) day, and $262 million per calendar (not work) hour.

Keep in mind that this is happening as both the household, financial and corporate sectors are no releveraging, so one can’t use the argument that the US is merely picking up someone else’s slack. And with total debt subject to the ceiling now at $16.222 trillion, and with the ceiling at $16.394 trillion, it means the US has $172 billion in incremental debt capacity, or if one were to use the rate of October change as a benchmark, roughly 26 days until breach and the mandatory raiding of various government funds has to commence. The breach will with absolute certainty happen before the year is out, or just as the negotiations over the fiscal cliff are in full swing…

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