October 1st has come and gone, quietly the U.S. Treasury borrowed another $93 billion on that single date. Why so much in just one day? As you know, October 1 is the beginning of a new fiscal year so in order to make last year’s deficit “look better”, they held some of the borrowings off until “this year”. Does it change anything? No, not at all but it does illustrate the fact that the Treasury feels the need to screw with perceptions and “jiggle” the numbers.
This $93 billion works out to roughly $280 for every man woman and child in the country. It works out to roughly $600 for every “TAXPAYING” man and woman in the country. The “on books” debt is now over $50,000 for every man woman and child and over $100,000 for every TAXPAYING man and woman. Big deal you say? The percentage of Americans who have less than $10,000 of liquid capital is greater than 80%. The amount of Americans that live from paycheck to paycheck (or snap card to snap card) is well over 50%.
I know, $93 billion is not even a ham sandwich in today’s world of high finance. However, in relation to real money, $93 billion is REAL MONEY. HUGE MONEY! In fact, it takes the world’s mining industry about 9 months to extract this much Gold from the ground. So…why not just do it the easy way? Borrow $93 billion on day one of the new year (pent up from the previous year) from a world unwilling to lend this amount, and have your private bank, The Federal Reserve print up a boatload of new cash to fund it all.
Do you see how far out of perspective this has become? One country, in one day, borrows in Dollar terms an amount equal to 3/4’s of all the new, real money, created in one years’ time of the ENTIRE WORLD? Do you see that something is truly askew here? Like maybe something needs to be readjusted? Maybe the borrowing capacity of the U.S.? Or maybe the “value” of Dollars that are effortlessly created? Or maybe the Dollar value of Gold which takes real capital, labor, and equipment to extract from the Earth to become deliverable in form? Who is the dumb@$# here? The Treasury? I don’t think so. Wouldn’t anyone borrow to infinity and never “pay” if they could?
No, “we” and the rest of the world are the “dumb@$#” for allowing this to happen! We and the rest of the world will stay on this merry go round of non-payment until someone big enough, important enough and with enough clout says ENOUGH is ENOUGH. Could be China? Russia? The BIS? A consortium? Who knows and it doesn’t matter. It’s going to happen mathematically as sure as 2+2=4. It is mere human nature for a “seller” of anything, whether it is labor, product or material to want something of equal or higher value in return. Dollars cost NOTHING to create… so… what is their value? Something of “equal or higher value” is not “Dollars” no matter how many you are offered, I assure you!
P.S. What is the value of “0” to the infinite power?