by Wolf Richter, Wolf Street:
Our drunken sailors in Congress better head to the detox.
The magnificently ballooning US government debt is rapidly approaching $34 trillion (now at $33.84 trillion), up from $33 trillion in mid-September, and up from $32 trillion in mid-June, amid a tsunami of issuance of Treasury securities to fund the stunning government deficits.
But inflation has broken out on a massive scale in early 2021, and the Fed has hiked its policy rates to 5.5% at the top end, and it has unloaded $1.1 trillion from its balance sheet under its QT program, which is pushing up long-term yields. And so the interest rates that the Treasury Department has to pay to be able to sell these mountains of Treasury securities every week has risen, with T-bills selling at yields of around 5.5% and longer-term securities selling at yields in the 4.3% to 4.7% range, after going over 5% a month ago.
The United States Government today bears little resemblance to the government created by the Founding Fathers.
“That’s how I feel, don’t advertise,” Musk said.
The “CTIL Files,” based on documents received from an unnamed but “highly credible” whistleblower, according to investigative journalists Michael Shellenberger, Alex Gutentag and Matt Taibbi, describe U.S. government censorship activities dating back to 2017.
If you know the background context, the latest developments in the Seth Rich laptop legal battle could be extremely interesting. However, despite a very favorable court ruling, I caution against too much optimism – the stakes in this ancillary story to the targeting of President Donald Trump are extremely high.
